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Update: WTI Oil Rises as Iran-US Fighting Resumes, Trump Says Ceasefire Is Over

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(Updates prices in the second paragraph and adds EIA data in the final paragraph.)

West Texas Intermediate (WTI) closed higher on Wednesday as the U.S. and Iran traded attacks, with President Trump saying the ceasefire deal reached last month is over.

WTI crude oil for August delivery closed up $3.08, or 4.4%, to settle at $73.52 per barrel, the highest since June 18, while September Brent oil was last seen up $3.80, or 5.1%, to $77.96.

The rise comes as the U.S. renewed attacks on Iran on Tuesday following Iranian strikes on ships moving through the Strait of Hormuz. Trump told reporters at the NATO summit in Turkey the ceasefire agreement between the two countries is "over". The U.S. on Tuesday also re-imposed sanctions on Iranian oil exports that were lifted after the June 18 ceasefire deal.

"The latest rally followed US strikes on targets in Iran and Washington's decision to revoke a waiver allowing new sales of Iranian oil, in response to attacks on commercial shipping in the Strait of Hormuz. The escalation threatens fragile negotiations aimed at securing a permanent peace, with both sides accusing the other of violating the ceasefire," Ole Hansen, head of commodity strategy at Saxo Bank.

Despite renewed fighting, ships trapped in the Persian Gulf since the start of the war have continued to move through the Strait of Hormuz, with hormuzstraitmonitor.com reporting 25 ships moved through the waterway in the past day.

In its weekly report, the Energy Information Administration reported U.S. commercial oil inventories rose by 5.6-milllion barrels last week, the first rise in 11 weeks. Analysts polled by Investing.com expected the agency to report a drop on 1.9-million barrels.

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