Trump Announces End of Truce with Iran. This Is How the Fuel Market Reacted
The fuel market reacted to Donald Trump's statements. The US President said that the truce with Iran is over for him. The price of Brent crude oil from the North Sea rose to $78.6 per barrel before 11:00 on July 8.
Donald Trump made key decisions before the night of July 7 to 8, Polish time.
Fot. Martijn Beekman, materiały prasowe NATO
As recently as Tuesday afternoon, July 7, a barrel cost about $73.70. After Trump's statement, prices rose by $2.8 since midnight, which became the main signal for the fuel market. This is a reaction to the increased tension surrounding Iran.
Oil Prices Surge. The Market Reacts Instantly
Donald Trump said that the truce with Iran is over. According to Bloomberg, he also stated that further talks are a "waste of time," which immediately affected oil prices. The price jumped quickly. A barrel of Brent crude from the North Sea was valued at $78.6 before 11 a.m.
In the background were US military actions. The United States attacked targets in Iran overnight, even though the parties had previously agreed to a truce in June. Iran announced a "crushing response." Tehran also claims it struck 85 American military installations in Bahrain and Kuwait.
In the background were US military actions. The United States attacked targets in Iran overnight, even though the parties had previously agreed to a truce in June. Iran announced a "crushing response." Tehran also claims it struck 85 American military installations in Bahrain and Kuwait.
The Strait of Hormuz is one of the world's most important oil routes.Photo: MC2 Indra Beaufort, Public domain, via Wikimedia Commons
Fuel Risk Returns. All Because of the Strait of Hormuz
The United States Central Command (Centcom) reported that the attacks were in response to strikes on three tankers in the Strait of Hormuz. Iran, on the other hand, claims that it was the US that violated the truce after revoking a sanctions exemption that allowed Iran to sell oil for 60 days. This is important for raw material transport. The Strait of Hormuz remains one of the key points for the global fuel market.
Svein Ringbakken, director of the Norwegian Shipowners' War Risk Insurance (DNK), told E24 that there are grounds to expect combat operations. He noted that the maritime industry is once again facing a difficult situation, and shipowners will have to conduct more demanding risk assessments. According to him, ships linked to Norway that were on the inner side of the Strait of Hormuz and wanted to leave have already done so. Traffic in the strait had previously begun to recover after a sharp decline since the end of February.
Svein Ringbakken, director of the Norwegian Shipowners' War Risk Insurance (DNK), told E24 that there are grounds to expect combat operations. He noted that the maritime industry is once again facing a difficult situation, and shipowners will have to conduct more demanding risk assessments. According to him, ships linked to Norway that were on the inner side of the Strait of Hormuz and wanted to leave have already done so. Traffic in the strait had previously begun to recover after a sharp decline since the end of February.
Trump's statements were made during the North Atlantic Treaty Organization (NATO) summit in Ankara. NATO Secretary General Mark Rutte assured that the US remains fully committed to cooperation within the alliance. At the same time, Trump spoke about ending trade with Spain due to its opposition to the war with Iran.
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