Iran ceasefire’s end drives up oil prices and uncertainty

The end of the U.S.-Iran ceasefire is driving oil prices higher and fueling uncertainty over future energy prices.

On Tuesday and again Wednesday, the U.S. said it was striking Iran in retaliation for attacks on three commercial ships in the Strait of Hormuz.

President Trump, speaking at the NATO summit in Turkey, declared that the ceasefire that ended months of conflict was “over” and said that negotiating with Iran was a “waste of time.”

By Wednesday evening, the price of crude oil had jumped significantly higher than where it was at the start of the week. U.S. benchmark WTI Crude was trading at about $75 per barrel, while international benchmark Brent Crude was trading at $79, up from about $69 and $72, respectively, on Monday.

While these prices are significantly higher than they have been in recent days, they’re still well below peaks seen at the height of the war, when they neared $120 per barrel.

That’s because traders are waiting to see what actually happens next.

Robert Weiner, professor of international business at George Washington University, said that the market is pricing in “a slightly increased chance of problems in exporting oil” but added that he wouldn’t be surprised “if tomorrow or the next day there’s more news that lessens the effects of this.”

Over the next few days, prices are expected to “continue to creep up,” said Kenneth Medlock, a fellow in energy and resource economics at Rice University’s Baker........

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