Oil prices briefly climbed above $80 per barrel on Wednesday after renewed tensions in the Middle East. Global stock markets also declined following comments by US President Donald Trump.
Trump said the ceasefire with Iran was over during the NATO summit. However, he also indicated that further diplomatic talks remained possible.
Oil Prices Surge As Strait Concerns Return
The latest escalation followed Iranian attacks on ships in the Strait of Hormuz. The strategic waterway handles a significant share of global oil shipments.
Consequently, Brent crude rose eight percent to briefly reach $80.12 per barrel. Meanwhile, US benchmark West Texas Intermediate gained 7.7 percent to $75.83.
Analysts said fears of another disruption to oil supplies unsettled financial markets. Investors also worried about the possible closure of the Strait of Hormuz.
European markets ended sharply lower following the renewed geopolitical tensions. Paris and Frankfurt each lost more than two percent, while London fell 1.6 percent.
Global Stocks Extend Losses Amid Uncertainty
Wall Street also traded lower after Trump’s remarks increased investor concerns. The Dow Jones Industrial Average fell 1.6 percent, while the S&P 500 and Nasdaq also declined.
Meanwhile, Asian markets extended losses as geopolitical risks combined with technology sector weakness. South Korea’s Kospi index dropped more than five percent during trading.
Technology companies also came under pressure despite strong earnings expectations driven by artificial intelligence demand. Samsung and SK hynix each fell around six percent.
Additionally, the US dollar strengthened against major currencies as investors sought safer assets. Analysts warned that higher oil prices could increase inflation and complicate future interest rate decisions.
