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Oil Prices Climb as Trump Warns of More Attacks on Iran

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Oil Prices Climb as Trump Warns of More Attacks on Iran

Crude oil prices rose more than 5% Wednesday as President Donald Trump threatened additional strikes against Iran tonight, saying the ceasefire with Tehran was over.

West Texas Intermediate climbed 5.3% to $74.19 a barrel, while Brent gained 5.8% to $78.43.

The US struck Iran on Tuesday after Tehran attacked three tankers that crossed the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps hit US military targets across Bahrain and Kuwait in retaliation to Washington's attacks, CNN reported.

The US will likely hit Iran again tonight, Trump said Wednesday at a North Atlantic Treaty Organization summit in Turkey.

Trump said the peace deal with Iran is "over."

"To me, I think it's over," he said at the summit. "I don't want to deal with them."

Last month, the US and Iran agreed to a memorandum of understanding to end their war and reopen the Strait of Hormuz. The deal allowed a 60-day period for both countries to iron out a final long-term deal and tackle issues such as Iran's nuclear program.

"The escalation threatens fragile negotiations aimed at securing a permanent peace, with both sides accusing the other of violating the ceasefire," Saxo Bank said in a report Wednesday. "Brent has moved back above $76, potentially triggering further short covering among hedge funds."

The US Treasury Department said Tuesday that it withdrew a waiver that allowed Iran to sell oil.

A peace deal between the US and Iran is a key risk to watch in the second half of 2026 as energy prices may determine inflation expectations, Oxford Economics Chief Global Economist Ryan Sweet said in remarks emailed to.

"If the peace deal breaks, and it's too early to tell, it won't just raise oil prices; it would also increase pressure on (artificial intelligence) supply chains in Asia, force central banks to be hawkish, tighten financial conditions, and could shift the outcome of the US midterms," Sweet said. "The cascade runs fast."

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