Crude oil surges over 6 pc to near $80 as war between Iran and US is over

Global crude oil prices jumped over 6 percent on Wednesday after U.S. President Donald Trump declared that the cease‑fire between Washington and Tehran had effectively collapsed following a new series of American strikes on Iran, raising worries about oil supplies from West Asia.

International oil benchmark Brent crude climbed as much as 6.52 per cent or $4.69 to trade near $80 a barrel. Similarly, US benchmark West Texas Intermediate (WTI) advanced more than 6 per cent or $4.85 to around $75 a barrel.

Speaking in Ankara on the sidelines of the North Atlantic Treaty Organization (NATO) Summit, Trump told reporters that the US had carried out fresh strikes against Iran overnight in response to what he described as Iranian attacks on commercial vessels transiting the Strait of Hormuz.

He said, “To me, it’s finished. I have no interest in negotiating further. They are scum—sick individuals led by sick people, vicious and violent. If they possessed nuclear arms they’d use them. As far as I’m concerned, it’s over. I’ll talk to our negotiators; they want to talk, but dealing with them is just a waste of time. They lie. We strike a deal—everyone agrees—no nukes. We make a deal, then they go to the press and claim we never discussed it. Something’s off with them; they’re crazy. For me, it’s over.”

Trump also described Iranian leaders in strongly critical terms and said he no longer wished to pursue negotiations with Tehran, expressing scepticism about the prospects of any future agreement.

His remarks came amid renewed tensions in the region following a series of attacks on vessels passing through the Strait of Hormuz, a key global oil shipping route.

The sharp rise in crude prices weighed on investor sentiment, with Indian equity markets witnessing broad-based selling.

As of 3 pm, Sensex fell around 1,900 points or more than 2 per cent to 76,259, while Nifty was down nearly 600 points or over 2 per cent at 23,805.

The latest rally in crude prices marked a sharp reversal from earlier expectations of abundant supply after OPEC+ announced higher production quotas and major Middle Eastern producers increased output.

Meanwhile, the Indian rupee weakened by 20 paise to 95.16 against the US dollar in early trade. The domestic currency opened at 95.15 against the greenback.