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US Oil Update: Oil Surges to 2-Week High as Trump Declares US-Iran Ceasefire 'Over'

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Crude oil prices extended their rally to reach a two-week high on Wednesday after President Trump declared the US-Iran ceasefire "over," following direct military exchanges across the Persian Gulf, alongside the immediate revocation of Iran's oil sanctions waiver.

Front-month West Texas Intermediate crude futures advanced 5.1% to $74.01 per barrel, while Brent futures climbed 5.4% to $78.17/bbl and hit their highest since June 22.

The market surge followed an official declaration from US President Donald Trump that the interim ceasefire memorandum of understanding with Iran is officially "over."

ANZ analysts warned that these renewed kinetic and political attacks raise the immediate prospect of a total collapse of the peace deal, which would stall any ongoing recovery in Persian Gulf oil supplies

"Tanker traffic through the Strait of Hormuz has essentially stopped, which tells you more about risk perception right now than any statement from Washington or Tehran," said Jorge Leon, Head of Geopolitical Analysis at Rystad Energy, in a Wednesday note.

The collapse of the truce follows a rapid sequence of military escalations along vital maritime shipping lines.

The UK Maritime Trade Operations first confirmed that tankers transiting the strategic chokepoint sustained minor structural damage after being targeted and struck by aerial vehicles.

In an immediate response to Iran targeting three transit tankers, the US Central Command launched retaliatory military strikes against regional targets.

Iran's Islamic Revolutionary Guards Corps reportedly retaliated against the American airstrikes by launching a wave of drones and missiles directly at US military facilities located in Bahrain and Kuwait.

Simultaneously, Washington dismantled the economic component of the agreement. The US Treasury Department's Office of Foreign Assets Control abruptly revoked the sanctions waiver that had previously authorized the global sale of Iranian-origin oil.

Under this newly issued directive, all fresh transactions for Iranian oil are strictly prohibited.

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