Oil prices have steadied following President Trump's latest confirmation that the Iran ceasefire is officially 'over.' According to the latest reports, Brent crude traded nearly flat at $76.38 per barrel as of 8:20 p.m. IST, while West Texas Intermediate eased slightly by 0.4% to $71.92 per barrel. This represents a significant stabilization from the dramatic volatility seen earlier this week when oil prices experienced a 5.2% surge to $78.02 per barrel before briefly topping $80. The price recovery had been driven by Trump's initial declaration that the ceasefire was over, though his latest statement suggests renewed diplomatic efforts may be underway. The president's comments follow several nights of US airstrikes and Iranian retaliation that sent oil prices higher and raised doubts about further talks toward a broader peace deal.
President Trump's latest comments have created significant market uncertainty, with him raising doubts about the temporary truce in the war with Iran. As reported by multiple sources, Trump said the ceasefire agreement was 'over,' but later clarified that recent fighting did not mean a return to full-scale war. In his latest social media post on Truth Social, Trump stated: 'The Islamic Republic of Iran has asked us to continue 'talks.' We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!' Trump's comments are likely to ease fears of a return to all-out war, with markets getting a jolt that moving past war risks has been premature, yet the modest reaction in oil will keep the cross-asset reaction contained.
Despite the ceasefire being declared over, diplomatic efforts appear to be continuing behind the scenes. According to media reports, Qatar and Pakistan are also trying to bring the US and Iran back into negotiations, while technical talks between Washington and Tehran are continuing according to a US official. The official confirmed that the US remained committed to finding a solution to the ongoing conflict. Iran's semi-official Tasnim news agency said a Qatari delegation visited Iran in what analysts said appears to be an effort by Doha to consolidate its role as a mediator. Talks in Iran aim to address the implementation of the US-Iran memorandum of understanding and the issues that triggered the recent escalation between Washington and Tehran, including disputes over navigation in the strait.
The oil price stabilization had widespread market implications, with companies with big fuel bills showing mixed performance. Earlier this week, American Airlines had lost 4% and cruise operator Carnival had fallen 3.9% as companies with big fuel bills sank. However, some sectors provided offsetting support, with Nvidia rising 3.7% and Broadcom climbing 4.8% after Apple announced a multiyear commitment worth over US$30 billion where Broadcom will design and produce custom components for Apple's products. In the bond market, Treasury yields rose with oil prices, with the 10-year Treasury yield briefly reaching 4.60% before pulling back to 4.57%, up from 4.55% late Tuesday and from just 3.97% before the Iran war began.
