Oil Prices Jump After Trump Says Ceasefire With Iran Is Over

By Giulia Petroni

Oil prices jumped 6% after President Trump said he believed his ceasefire deal with Iran was over, the strongest signal yet that diplomatic efforts with Tehran have stalled since the preliminary agreement reached in mid-June.

In midmorning European trade, front-month Brent crude futures gained 6% to $78.63 a barrel, while West Texas Intermediate rose 6.2% to $74.85 a barrel. Natural-gas prices climbed, with the benchmark Dutch TTF contract up 4.8% to 49.04 euros a megawatt-hour.

Trump's remarks came after the two sides exchanged a series of strikes and the U.S. revoked a waiver allowing Tehran to sell oil following Iranian attacks against ships near the Strait of Hormuz on Tuesday. However, Trump stopped short of saying the U.S. would restart the war and said he would let talks continue if the parties were willing.

"Every renewed attack on commercial shipping further erodes confidence in the Strait's reopening, making each future recovery more fragile than the last," said Michelle Brouhard, head of policy and geopolitical risk at Kpler. "If every reopening is assumed to be temporary, freight rates remain elevated, insurance costs remain high and fewer vessels are willing to re-enter the Gulf."

The oil market's forward curve has also strengthened, with the front end moving back into backwardation, which occurs when futures with near-term deliveries are marketed at a premium over longer-dated contracts. The shift indicates traders are once again willing to pay a premium for immediate crude supplies, reflecting renewed concerns over potential supply disruptions and stronger prompt demand.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

July 08, 2026 05:33 ET (09:33 GMT)