BENGALURU: Oil prices jumped more than 5 percent on Wednesday, hitting a two-week high 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 futures gained $3.82, or 5.15 percent, hitting $77.98 a barrel at 11:32 a.m. Saudi time, while US West Texas Intermediate crude climbed $3.70, or 5.25 percent, to $74.14 a barrel. The benchmarks are at their highest levels since June 23.
Both rose about 3 percent on Tuesday after the US revoked the general license authorizing the sale of Iranian crude.
Speaking ahead of a NATO summit in Ankara, Trump said the interim pact to end the war that the US and Israel launched against Iran in February was “over,” adding he didn’t 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.
