Oil surges, global markets fall after Trump declares Iran ceasefire over
Global financial markets came under pressure on Wednesday after U.S. President Donald Trump said the interim agreement aimed at ending the conflict with Iran was "over," raising fears of renewed hostilities in the Middle East, Qazinform News Agency correspondent reports.
Oil prices surged as concerns grew over potential disruptions to shipping through the Strait of Hormuz, a key route for global energy supplies. Brent crude rose more than 5% to around $78 a barrel, briefly climbing above $80, while U.S. benchmark West Texas Intermediate traded near $74 a barrel.
Equity markets declined worldwide as investors reacted to the renewed uncertainty. The S&P 500 closed down 0.3%, the Dow Jones Industrial Average lost 1.1%, while the Nasdaq Composite edged up 0.2% after recovering from earlier losses. In Europe, Germany's DAX and France's CAC 40 each fell about 2.2%, while South Korea's Kospi dropped more than 5%.
Bond yields also climbed as higher oil prices fueled concerns that inflation could remain elevated, potentially delaying interest rate cuts by central banks.
Earlier, Qazinform News Agency reported that Trump threatened Spain with a trade embargo over a base dispute.
