President Donald Trump, President of the United States, declared the interim ceasefire agreement with Iran effectively over in Washington, D.C., on 9 July 2026, triggering a sharp rally in global oil markets as Brent crude climbed above $80 per barrel amid renewed fears over energy supplies.

The latest surge followed escalating military exchanges between the United States and Iran after attacks on commercial vessels transiting the Strait of Hormuz.

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According to market data, Brent crude rose from about $72 per barrel earlier in the week to $74 on Tuesday before jumping 7.6 per cent to $80 on Wednesday. US benchmark West Texas Intermediate crude for August delivery also gained to $75.40 per barrel.

Speaking after the latest escalation, Trump dismissed the memorandum of understanding signed with Iran in June, describing the agreement as “a waste of time” following attacks on international shipping.

The remarks reinforced expectations that diplomatic efforts had broken down and intensified concerns over the security of one of the world’s most important oil transit routes.

The confrontation intensified after Iran attacked three commercial vessels passing through the Strait of Hormuz on Tuesday.

Reports said an LNG tanker suffered an engine room fire after being struck on its port side, while a Saudi-flagged supertanker sustained minor damage off the coast of Oman.

In response, the United States Central Command said it carried out extensive airstrikes against more than 80 military targets across Iran, including positions on Qeshm Island, Sirik and the port city of Bandar Abbas.

The military said the operation employed precision-guided 5,000-pound deep-penetrator munitions.

The Trump administration also revoked a temporary sanctions waiver that had allowed Iran to export oil and petrochemicals, further tightening economic pressure on Tehran.

Meanwhile, the Khatam al-Anbiya Central Headquarters announced the formal closure of the Strait of Hormuz, warning that any commercial vessel attempting to pass through the waterway would face direct military intervention.

The declaration heightened uncertainty across global energy markets because roughly one-fifth of the world’s seaborne oil trade typically passes through the strategic chokepoint.

The renewed crisis quickly rippled through the shipping industry. Freight rates for tankers operating in the Gulf rose as shipowners demanded higher risk premiums, while refiners across Asia reportedly sought alternative crude supplies from West Africa, the United States and Latin America to reduce dependence on shipments through the Gulf.

The sharp rebound in oil prices represents a significant reversal from the recent decline that had seen Brent crude retreat from around $120 per barrel to about $71.

That earlier fall had fuelled expectations of lower petrol and diesel prices in several oil-importing countries, including Nigeria.

Energy analysts cautioned that if the conflict continues or shipping through the Strait of Hormuz remains disrupted, higher crude prices could once again feed into global inflation and increase fuel costs for consumers.

Market participants are also watching closely for any further diplomatic efforts that could stabilise supplies and ease volatility.

The latest escalation follows weeks of fragile diplomacy after the June ceasefire agreement temporarily reduced hostilities between Washington and Tehran.

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However, the latest military exchanges suggest that those efforts have unravelled, leaving global markets facing renewed geopolitical risk and an increasingly uncertain outlook for energy prices.