President Donald Trump announced Wednesday that the tentative ceasefire between the U.S. and Iran has ended following a new round of U.S. air strikes.
The collapse of the agreement threatens to destabilize the Middle East and disrupt global energy markets, as the region returns to active military conflict.
Trump said the ceasefire is over during an appearance on Bloomberg Television. The president said that the U.S. resumed air strikes against Iranian targets, which led to the dissolution of the peace agreement.
Market reactions were immediate following the announcement. Brent futures added more than five percent [1], while West Texas Intermediate (WTI) saw a gain of approximately five percent [2]. These price increases reflect investor concerns over potential disruptions to oil supplies in the region.
Trump provided varying descriptions of the military situation. While announcing the new strikes on Wednesday, he previously said on Tuesday that Iran’s military was largely untouched by U.S. strikes over the past three months [3].
The president's characterization of the agreement also shifted. In addition to declaring the ceasefire over, Trump said the ceasefire is on life support [4].
U.S. officials have not provided specific details regarding the targets of the latest air strikes or the total number of munitions deployed. The Iranian government has not yet issued a formal response to the renewed American military activity.
“"The ceasefire is over."”
The abrupt termination of the ceasefire and the resumption of air strikes suggest a shift back toward a policy of maximum pressure. The immediate spike in oil prices indicates that global markets view the risk of a wider regional conflict as high, which could lead to sustained inflation in energy costs if the U.S. and Iran do not return to negotiations.
