Oil Prices Surge over 6% as Trump Declares Iran Peace Deal ‘Over’

Global oil prices surged by more than six per cent on Wednesday after U.S. President Donald Trump declared that the interim peace agreement between the United States and Iran was effectively “over,” signalling renewed uncertainty over diplomatic efforts to end months of hostilities between the two countries.

Global oil prices surged by more than six per cent on Wednesday after U.S. President Donald Trump declared that the interim peace agreement between the United States and Iran was effectively “over,” signalling renewed uncertainty over diplomatic efforts to end months of hostilities between the two countries.

Trump made the remarks while responding to questions during the NATO leaders’ summit, saying he no longer wished to engage with the Iranian government.

His comments came as crude prices rallied sharply, with checks by Nairametrics showing that West Texas Intermediate (WTI) crude rose 6.22% to $74.82 per barrel, while Brent crude climbed 6.36% to $78.88 per barrel.

The latest development comes barely weeks after the United States and Iran signed an interim peace agreement in mid-June aimed at ending months of conflict, with both countries committing to continue negotiations on unresolved issues, including Iran’s nuclear programme.

However, the agreement has since suffered several setbacks.

What Trump is saying

Responding to a question on whether the interim agreement—which envisaged negotiations toward a long-term peace deal by mid-August—had effectively collapsed, Trump suggested he no longer believed further talks with Tehran were worthwhile.

• “It’s a very interesting question. To me, I think it’s over. I don’t want to deal with them. They’re scum. They’re sick people. They’re led by sick people.”

The U.S. President further dismissed the prospects of future negotiations with Iran.

• “As far as I’m concerned, it’s just a waste of time dealing with them.”

The anticipated peace agreement has suffered a major setback in recent days following a fresh escalation in hostilities between the two countries.

Overnight, the United States carried out strikes on more than 80 locations across Iran, targeting air defence systems, command centres and coastal radar installations.

In response, Iran’s Islamic Revolutionary Guard Corps said it launched attacks on military bases in Kuwait and Bahrain, while Kuwaiti authorities said their air defence systems intercepted hostile missiles and drones.

Meanwhile, Iran’s Parliament Speaker, Mohammad Bagher Ghalibaf, warned Washington that Tehran would not bow to pressure, insisting that “the era of bullying and extortion is over.”

Get up to speed

The renewed tensions also coincide with Washington’s decision to reverse an earlier sanctions waiver that had temporarily allowed Iran to resume crude oil exports.

The policy reversal has left an estimated 63 million barrels of Iranian crude stranded aboard tankers, either waiting offshore or sailing without confirmed buyers, according to Bloomberg calculations based on Vortexa shipping data.

Most of the vessels are positioned across the Persian Gulf and Asian waters, with many either not indicating a destination or signalling availability for new orders, suggesting buyers have yet to commit to the cargoes.

The move marks a reversal from June 22, when Nairametrics reported that the United States had temporarily suspended sanctions on Iranian oil exports for 60 days to support ongoing diplomatic negotiations.

What you should know

Global oil prices, which at one point surged to about $120 per barrel during the height of the conflict between the United States and Iran, retreated below $80 per barrel after both countries signed an interim peace agreement in June.

Since the conflict began, oil prices have remained highly volatile as tensions around the Strait of Hormuz—a strategic waterway through which more than 20 per cent of global oil supplies pass—raised fears of disruptions to global crude exports. At various stages of the conflict, military activities by both sides heightened concerns over possible blockades of the shipping route.

• The fluctuations have also affected Nigeria’s downstream petroleum market. Data previously released by the National Bureau of Statistics (NBS) showed that the average retail price of Premium Motor Spirit (petrol) rose by 55.31 per cent year-on-year to N1,596.25 per litre in May 2026.
• More recently, however, domestic fuel prices have shown signs of easing. Last Thursday, Dangote Petroleum Refinery & Petrochemicals reduced its ex-depot price of petrol by N50 to N1,075 per litre, marking the fourth reduction within one month.

To ensure the reductions are reflected at filling stations nationwide, the Federal Government on Monday convened a meeting involving Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and other oil and gas stakeholders to discuss the fair implementation of lower petrol prices across the country.