Global crude oil prices rise more than 5% as Trump pulls out of Iran peace deal
Washington D.C., July 8
,: Global crude oil prices surged more than 5 per cent on Wednesday after the US launched fresh strikes on Iran in retaliation for Tehran striking commercial vessels in the Strait of Hormuz.
"Strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran's demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire," the U.S. Central Command said in a post on X.
Speaking to reporters in Ankara during a press conference at the NATO summit, US President Trump called off the interim peace deal with Iran and said that he doesn't want to deal with the Iranians anymore. The president described the Iranian leadership as 'scum'.
The US West Texas Intermediate was trading at USD 74.5, up 5.8 per cent, while the global benchmark Brent crude was trading at USD 78.35, rising by 5.65 per cent.
Oil prices had weakened to pre-conflict levels as talks between the two sides progressed following the signing of a Memorandum of Understanding (MoU) in June that immediately halted hostilities and opened the Strait of Hormuz for 60 days toll-free.
The US has also revoked the sanction waiver that was granted to Tehran in the wake of the interim peace deal and the conclusion of the first round of talks between the two sides in Switzerland. The commercial vessel traffic picked up after tensions ebbed and signs of a rapprochement appeared to take effect.
The latest round of strikes between the two sides signals that oil prices could again climb back to levels that threaten inflation. US gasoline pump prices have stayed high despite the recent fall in global crude oil prices and Trump's warning to oil companies to cut them.
High inflation in the US is a worry for Trump as he prepares for the November midterm elections. The fresh bout of tensions between the US and Iran raises the odds of a rate hike by the US Federal Reserve, even as its newly appointed chairman, Kevin Warsh has prioritised bringing inflation down to its comfort level.
— ANI
Reader Comments
Trump calling Iranian leadership 'scum' is not diplomacy. This is reckless and escalating tensions unnecessarily. Meanwhile, regular Americans and Indians alike will pay more at the pump. Oil companies never lose, do they?
India imports 85% of its crude oil! Every time something happens in the Middle East, we get hit the hardest. Our government should be investing more in renewable energy and reducing our dependence on Gulf oil. But no, we keep building more refineries.
Honestly, both sides are at fault here. Iran shouldn't have attacked commercial vessels, and the US pulling out of the peace deal is just adding fuel to fire. Literally. 🛢️🔥 Meanwhile, our auto-rickshaw drivers and truck operators will be the ones crying.
As someone working in logistics, this is a nightmare for global supply chains. India's manufacturing sector was just recovering, and now this. The Fed hiking rates will also mean more expensive loans for everyone. Bad news all around.
The timing couldn't be worse. Monsoon season in India and fuel prices going up means everything from vegetables to construction materials will become costlier. 🤬 Middle East conflicts always make us pay the price. Time for India to seriously push for electric vehicles and solar energy.
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