Trump Scraps Iran Deal, Sending Oil Prices Surging 6%
President Trump declared the US-Iran memorandum of understanding dead, triggering a sharp oil rally and broad market selloff.
President Donald Trump declared the US-Iran ceasefire memorandum of understanding over during a visit to Ankara for the NATO summit on Tuesday, abruptly resetting diplomatic ties with Tehran and sending global energy and equity markets into a sharp reversal. Trump called Iranian leaders "dirty players" and said the US had no interest in further engagement, a statement Iran quickly condemned as a "blatant violation" of the existing agreement.
Crude oil spiked immediately on the geopolitical shock. WTI crude surged 6% to $74.70 a barrel, while Brent crude climbed 5.5% to $78.30 — reflecting the market's swift repricing of Middle East supply risk. China's reported decision to lift restrictions on refined fuel exports for the rest of July added another layer of complexity to the commodity picture.
Read more Oil Prices Climb as U.S. Strikes on Iran Stoke Supply Fears →
The broader risk mood deteriorated fast. European equity indices fell more than 2% across the board, S&P 500 futures dropped 1%, and Nasdaq futures shed 1.4%, compounding losses from the previous session. Safe-haven assets offered little shelter — gold slipped 1.4% to $4,050 and silver dropped 2.3% to $58.65, pressured in part by growing bets on future Federal Reserve rate hikes. Ten-year Treasury yields rose 5 basis points to 4.58%, approaching the June high.
Trump's Ankara visit also generated friction with NATO allies. He threatened to cut trade ties with Spain over the country's defense spending shortfall and revisited his Greenland agenda with renewed intensity, amplifying unease across European capitals already rattled by the Iran news.
In currency markets, the dollar held steady to modestly firmer. EUR/USD traded flat near 1.1410, while USD/JPY edged up 0.2% to 162.40. The New Zealand dollar outperformed after the Reserve Bank of New Zealand struck a more hawkish tone earlier in the session, lifting NZD/USD 0.4% to 0.5700. Continue reading at Forexlive.
