Global oil markets reacted with a sharp rise in quotes to the geopolitical escalation. Immediately after US President Donald Trump's statement on new measures against Iran, the cost of black gold reached its highest levels in recent weeks.
Oil breaks through key levels
According to data cited by RBK-Ukraine from The New York Times, Brent crude jumped by more than 5%, exceeding the $78 per barrel mark. This is the highest figure in two weeks. Although the current price is still below historical peaks, it has confidently returned above the hypothetical "pre-war" level of $72, where quotes had been stable in recent days.
American WTI crude demonstrated similar dynamics, rising in price above $74 per barrel.
Stock market reaction
The rise in energy costs was immediately reflected in other financial assets. Against the backdrop of oil news, the S&P 500 index fell by 1%. A similar decline at the start of trading was recorded by leading stock exchanges in Europe and Asia, indicating a large-scale investor reaction to the risks of conflict escalation.
Reason for the crash: breakdown of diplomacy and new sanctions
The key factor that triggered volatility was Donald Trump's statement made on July 8. The American leader announced that the US would no longer observe the ceasefire regime with Iran. In addition, the White House officially refused further negotiations with Tehran.
The decision was made against the backdrop of an escalation in the situation in the Middle East. Earlier, the US military launched new strikes on targets in Iran in response to Tehran's attack on commercial vessels. The situation was exacerbated by the fact that the White House annulled the sanctions exemption that previously allowed Iran to export oil.
