Crude oil prices are up 5% on July 8 amid signs that the ceasefire between the U.S. and Iran has come to an end.
Brent and West Texas Intermediate (WTI) crude oil are each up 5% after the U.S. resumed military strikes on Iran.
Brent crude oil, the international standard, is trading at $78.16 U.S. after falling close to $70 U.S. in recent weeks.
The surge in crude prices comes after U.S. President Donald Trump said at a NATO military summit in Turkey that the U.S. ceasefire with Iran is “over.”
Trump’s comments come amid reports that Iran attacked three ships traveling through the Strait of Hormuz waterway, where 20% of the world’s oil is transported.
The U.S. has warned Iran that it will face “heavy costs” for targeting commercial ships in the Strait of Hormuz.
The U.S. Treasury Department said that it has revoked a license that permitted Iran to sell its oil around the world.
The situation with Iran has stock markets sharply lower on July 8, while the 10-year U.S. Treasury yield is trading five basis points higher at 4.581%.
Rising crude oil prices could spark an increase in inflation and put pressure on central banks to lift interest rates later this year.
