SynopsisCrude oil prices rose sharply on Wednesday to a two-week high after Donald Trump declared the Iran peace agreement "over", reviving fears of fresh supply disruptions from the Middle East. Analysts say concerns over the Strait of Hormuz, tighter sanctions and depleted inventories could keep oil prices elevated in the near term.ETMarkets.comOil prices surged more than 6% on Wednesday, climbing to their highest level in two weeks after U.S. President Donald Trump declared that the memorandum of understanding aimed at ending the conflict with Iran was "over", reviving concerns over potential disruptions to crude supplies from the Middle East.Brent crude futures rose $4.58, or 6.09%, to $78.66 a barrel, while U.S. West Texas Intermediate crude gained $4.22, or 6%, to $74.65 a barrel. Both benchmarks were trading at their highest levels since June 23. The rally extended gains from Tuesday, when both contracts advanced about 3% after the United States revoked the general licence authorising Iranian crude sales."The latest developments have effectively thrown the future of the 60-day negotiation process into doubt," Bjarne Schieldrop, chief commodities analyst at SEB told Reuters. "In my view, a price closer to $80 a barrel is more consistent with current market fundamentals than $70," he added.Also read: Iran promises a 'decisive' answer to US strikesSpeaking ahead of a NATO summit in Ankara, Trump said the interim agreement reached to end the war that the U.S. and Israel launched against Iran in February was "over" and added that he did not want to engage with Tehran.US strikes IranThe latest escalation follows US strikes on Iran in response to Iranian attacks on three commercial vessels passing through the Strait of Hormuz, a key route for transporting Middle East crude to global markets. The United States also reinstated sanctions on Iranian crude sales.Iran did not claim responsibility for the attacks. However, Qatar blamed Iran for the incidents, including an attack on a Qatari liquefied natural gas tanker that was hit by a drone, triggering a fire in its engine room. A Saudi-flagged crude oil tanker, believed to be the supertanker Wedyan, was also reported damaged off the coast of Oman, although maritime security sources said the cause was not immediately known.The attacks have once again fuelled concerns over shipping through the Strait of Hormuz, which carried cargoes equivalent to about one-fifth of global energy supply before the war began in February.Oil prices had fallen back to pre-war levels after the United States and Iran agreed to a truce last month. The decline prompted traders to build sizeable short positions in oil futures on expectations that delayed Middle East supplies would eventually return to the market.Read more: US strikes Iran & blocks oil sales in new threats to ceasefireWhat’s next?Industry experts said shipping through the Strait of Hormuz is unlikely to return to normal immediately. They said restoring regular operations would require coordinated vessel movements, restarting oil wells, repairing damaged infrastructure and agreements on de-mining operations. Several shipowners also remain reluctant to resume operations in the Strait of Hormuz and the wider Persian Gulf.Analysts said global oil inventories were depleted during the prolonged disruption to shipping through the strait and would take time to rebuild. They expect inventories to remain under pressure until additional crude supplies from the Gulf begin reaching international markets.Last month, Saudi Aramco Chief Executive Officer Amin Nasser warned that any prolonged disruption in the Strait of Hormuz could delay the return of stability in global oil markets until 2027. According to him, an extended disruption could affect nearly 100 million barrels of oil supply every week. Saudi Aramco is the world's largest oil producer.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) 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