Global oil prices spiked sharply on Wednesday after US President Donald Trump declared that the memorandum of understanding (MoU) reached with Iran to bring the conflict to an end was “over", while also making it clear that he had no interest in engaging with Tehran.
Brent crude jumped 6.20% to $78.75 per barrel, while US benchmark WTI crude gained 4.45% to trade at $74.98 per barrel.
The sharp rally came after Trump addressed reporters at the NATO summit in Ankara, Türkiye, where he confirmed that the United States had launched a major military operation targeting Iran.
“We attacked very powerfully last night, the very dangerous people from Iran," Trump told reporters, adding, “They’re sick, there’s something wrong with them."
Trump also indicated that he believes the Memorandum of Understanding (MoU) with Iran is “over", signalling a potential collapse in diplomatic efforts between the two countries.
His remarks intensified concerns over an expanding geopolitical crisis in the oil-producing region, leading market participants to price in the possibility of disruptions to crude supplies moving through critical maritime corridors, including the Strait of Hormuz. Heightened geopolitical risks typically support oil prices as traders anticipate potential pressure on global energy supplies.
The jump in crude prices added to pressure on Indian equities, with benchmark indices extending their decline during Wednesday's trade. The BSE Sensex tumbled more than 1,100 points, while the NSE Nifty slipped below the 24,050 level as investors reacted to escalating tensions in West Asia, rising oil prices and weak global market sentiment. At 1:55 pm, the BSE Sensex stood at 77,071.96, down 1,112.76 points, or nearly 1.4 per cent, while the NSE Nifty was trading at 24,045.32, lower by 350 points or 1.45 per cent.
