Oil Prices Jump After Trump Says Deal With Iran Is Over

Oil prices spiked on Wednesday to the highest level in weeks and stocks dropped after President Trump said that he thought the Iran cease-fire was “over” amid a volatile 24 hours in the Persian Gulf region.The Trump administration launched a series of strikes on Iran and revoked a waiver that had allowed Iran to sell oil.The actions against Iran on Tuesday were in retaliation for attacks on tankers this week in the Strait of Hormuz, a crucial conduit for the world’s energy.U.S.

Central Command said that it hit over 80 targets in Iran, including dozens of small boats used by the Iranian military, “to degrade Iran’s ability to continue attacking international commerce.” Iran’s military responded by targeting 85 U.S.military sites in Bahrain and Kuwait, prolonging a retaliatory cycle that could impede the nascent recovery in shipping traffic in the region.Oil prices rise sharply, breaking a relative period of calm.Brent crude oil, the international benchmark, rose more than 5 percent, to around $78 a barrel when prices settled on Wednesday, its highest level in over two weeks.

Although down significantly from its peak during the worst of the fighting, the recent jump pushed oil back above its prewar price of around $72 a barrel, where it had hovered for several days.West Texas Intermediate crude, the U.S.benchmark, also jumped, to more than $73 a barrel.

This grade of crude traded at $67 per barrel before the war.Daniela Hathorn, an analyst at Capital.com, a broker, said that investors had viewed the cease-fire as “fragile but ultimately durable,” until Mr.Trump’s comments on Wednesday called that into question.

“Any suggestion that negotiations have collapsed raises the risk of renewed supply interruptions or tighter sanctions,” Ms.Hathorn said in a statement.Gasoline prices don’t move in lock step with crude.

The U.S.national average price of gas was $3.80 a gallon on Wednesday, according to the AAA motor club.

That price remains more ...