Trump Orders Strikes on Iran After Attacks on Ships

President Trump on July 9 ordered fresh strikes against Iran after stating that the U.S. ceasefire with the country was over. The order followed attacks on ships in the Strait of Hormuz. Trump had said on July 8 that the fragile truce between the U.S.

And Iran was over in response to tit-for-tat attacks already occurring in the region. Washington also revoked a temporary sanctions waiver for Iranian oil. Both main oil contracts rose approximately 8 percent on July 8.

Brent crude topped $80 a barrel for the first time in two weeks. Vessel tracking data showed tanker crossings in the Strait of Hormuz have fallen in recent days. ING commodities strategists Warren Patterson and Ewa Manthey said the oil market has continued to rally as the ceasefire appears to be on life support.

A fragile calm settled over Iran and U.S. premises across the Gulf on July 10. Regional mediators sought to revive diplomatic efforts following the highest tensions between Washington and Tehran since their recent deal.

Neil Wilson of Saxo Markets said Trump's remarks set sparks flying and underscored fears of further escalation and a return to pre-MOU conditions.