Oil surges, stocks fall as Trump says Iran ceasefire no longer exists

Economy Donald TrumpenergyfuelinflationiranoilTop NewsUnited Statesuswar Oil surges, stocks fall as Trump says Iran ceasefire no longer exists Oil Surges, Stocks Fall As Trump Says Iran Ceasefire No Longer Exists Charalambos Zakos 9/07/2026 FacebookXWhatsAppEmailPrintViber Energy markets were on alert after US President Donald Trump said the ceasefire with Iran no longer exists, sending oil prices sharply higher and rattling global stock markets already anxious over the escalating conflict. Speaking on the sidelines of the NATO Summit in Turkey, Trump said efforts to end the conflict with Iran were not progressing as expected and that the ceasefire was no longer in place. The comments overturned the more optimistic mood that had built up in recent days, when strong investor sentiment and analyst views held that the path towards de-escalation was irreversible. An interim agreement between the US and Iran had created the impression that oil flows from the region could normalise in the medium term. The sudden flare-up over the past 24 hours not only undercut those expectations but put fresh pressure on oil prices, according to the report. Trump’s comments suggested Washington does not consider a final agreement with Iran a certainty, reviving concerns that the conflict could drag on. Strait of Hormuz in focus The greatest concern for governments and markets remains the Strait of Hormuz, one of the world’s most critical shipping routes, through which around 20% of the world’s oil and a significant share of the liquefied natural gas bound for international markets passes. According to Reuters, the US carried out fresh strikes against Iranian targets on Tuesday night, following Iranian attacks on three commercial vessels transiting the Hormuz area. Iran said it had targeted US military installations in Bahrain and Kuwait. The Strait has not closed, but shipping is not moving normally. Concern among shipowners and major shipping firms over tanker safety has spiked again, and at least four oil tankers and LNG carriers are reported to have altered course to avoid passing through the Strait. If vessel movements through the Strait and the wider region cannot continue unimpeded, a new global energy shock will be difficult to avoid. Disruption at the Strait affects not just countries in the region but the global economy — including Cyprus. Beyond reduced volumes of oil and gas moving through the passage, insurance premiums on ships and cargo are rising and shipping companies are avoiding the area, pushing up costs across the board. Prices react The latest developments have already left their mark on crude prices, interrupting — for now — their recent downward trend. Brent crude rose more than 5% on Wednesday, nearing $78.4 a barrel, while US WTI traded near $74.3. Both benchmarks hit their highest levels since 22 June, extending a roughly 3% rise the previous day after the US revoked the licence permitting sales of Iranian crude. Oil had fallen below $72 a barrel in the preceding days. The shift shows energy markets have moved from expecting de-escalation to fearing a new crisis, reconnecting energy prices with geopolitical risk and military escalation. Oil majors gain, other stocks fall Some companies benefited from the turmoil. ExxonMobil rose around 3.8%, Chevron around 3.5%, Shell gained close to 5%, and BP rose just over 3%. Other major stocks fell as markets turned more cautious, on fears that rising oil prices could trigger a fresh round of inflation and disrupt central banks’ plans to stabilise or cut interest rates. Investors face a renewed dilemma: escalating tension in the Middle East could push energy costs higher still and disrupt supply chains more broadly, while a possible return to negotiations bypassing the new tension could send prices lower again. That uncertainty explains market nervousness, with prices now moving not just on supply and demand but on statements, military manoeuvres, threats and expectations for what happens next at the Strait of Hormuz. Gold, traditionally seen as a safe haven in times of crisis, is under pressure, as rising crude prices stoke fears of higher inflation and pressure on central banks. The S&P 500 fell around 0.7% and the Dow Jones Industrial Average dropped around 1.0%. The Nasdaq-100 fell around 1.1%, while London’s FTSE 100 lost around 1.0%. South Korea’s KOSPI index fared worse, dropping around 5.4%. US airlines also suffered losses, falling between roughly 2% and 4%, as investors weighed the impact of higher oil prices on fuel costs and airline profits. Subscribe to our Newsletter Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world. Latest News Trump says Iran contacted him seeking deal after US strikes on the country Trump says ceasefire deal with Iran may be “over” and tensions spiral after new strikes Surviving the summer: How to cool off in Cyprus (without a private pool) Do you need to speak Greek to live in Cyprus? 37 degree peak on Thursday, sunnier days to come with Friday We want clear results now Made rich from the loot, still want the rest!