Oil prices briefly soared back above $80 per barrel while stock markets slid Wednesday, after US President Donald Trump said he believed the ceasefire with Iran was over, following renewed strikes in the Middle East.

The latest bout of fighting was sparked by Iranian attacks on ships in the vital Strait of Hormuz shipping route, through which a fifth of the world’s oil transited before the war.

Trump said at a NATO summit in Turkey that he thought the ceasefire was “over,” although he left the door open to more talks. He also said on Wednesday that the US would “hit [Iran] hard tonight.”

The markets responded, with oil shooting back up again, having in recent days come back down towards prewar levels. Trump, who is facing crucial midterm congressional elections in four months, has been especially sensitive to the rising price of gasoline during the Iran war.

International benchmark Brent North Sea crude jumped eight percent to $80.12 per barrel around 3:20 p.m. GMT (6:20 p.m. Israel time), before giving up some of those gains.

Meanwhile, the benchmark US oil contract, WTI for August delivery, gained 7.7% to $75.83 per barrel.

The potential reclosure of the Strait of Hormuz led to a sea of red on equity trading screens in markets across the world.

“The looming resumption of war between the US and Iran, or at least a fresh blockade of the latter, has driven a wave of selling in European markets that are heavily exposed to higher energy costs,” said Chris Beauchamp, chief market analyst at online trading and........

© The Times of Israel