SINGAPORE – Oil prices soared more than 6 per cent on July 8 after US President Donald Trump said the memorandum of understanding to end the conflict with Iran was “over”, renewing fears of disruptions to Middle East oil supplies.Brent crude, the global oil benchmark, jumped 6.2 per cent to US$78.74 a barrel as at 5pm Singapore time, while US West Texas Intermediate surged 6.3 per cent to US$74.85.The benchmarks are at their highest levels since June 23. They had already risen about 3 per cent on July 7 after the US revoked the general licence authorising the sale of Iranian crude.Speaking ahead of a NATO summit in Ankara on July 8, Trump said the interim pact to end the war that the US and Israel launched against Iran on Feb 28 was “over”, adding that he did not want to engage with Tehran.“The latest developments have effectively thrown the future of the 60-day negotiation process into doubt,” said Bjarne Schieldrop, chief commodities analyst at SEB.“In my view, a price closer to US$80 a barrel is more consistent with current market fundamentals than US$70,” he added.The US air strikes were in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz, US Central Command said on July 7. Iran’s Revolutionary Guards then said they targeted US military sites in Bahrain and Kuwait early on July 8.“Four oil and gas tankers have reportedly either decided not to transit the strait or been forced to turn around after Iran declared that the only safe shipping route through the Strait of Hormuz is the one designated by Tehran,” said PVM analyst Tamas Varga.After the US and Iran signed their truce agreement in June, oil prices tumbled back to pre-war levels after reaching a peak near US$125 a barrel in late April.Expectations of a wave of pent-up Middle East supply coming onto the market caused the price declines.Traders amassed large short positions in oil futures, betting that prices would fall further.The fresh attacks renew concerns about tanker traffic through the Strait of Hormuz, which carried cargoes equal to about one-fifth of global energy supply before the war began.Since the start of the conflict, nations have drawn down their inventories to make up for the supply shortfall.US crude oil inventories fell again last week, market sources said on July 7, citing data from the American Petroleum Institute. Analysts polled by Reuters had expected crude stockpiles to decline by about 2.4 million barrels in the week ended July 3. REUTERS