The fragile ceasefire between the United States and Iran appears to have collapsed after both countries exchanged fresh military strikes, prompting US President Donald Trump to declare that the truce was effectively over.
“I think it’s over,” President Trump said, referring to the preliminary truce.
Speaking at the NATO summit in Ankara on Wednesday, Trump dismissed the future of the ceasefire agreement signed last month, saying he no longer wished to engage with the Iranian leadership. While he indicated that negotiators from both sides could continue discussions, he suggested that further diplomatic efforts were unlikely to produce meaningful results.
The renewed hostilities have intensified fears of a broader regional conflict, driven up crude oil prices and raised fresh concerns over global energy supplies.
The latest escalation began after the United States launched airstrikes against more than 80 Iranian targets, saying the attacks were retaliation for assaults on three commercial vessels in the Strait of Hormuz. Washington also reimposed sanctions on Iranian oil exports, reversing one of the key concessions made under the preliminary ceasefire arrangement.
The ceasefire memorandum had been viewed as an important diplomatic breakthrough after months of conflict. Besides suspending hostilities, the agreement sought to ensure uninterrupted shipping through the Strait of Hormuz, one of the world's most critical energy corridors.
However, tensions had remained high even after the accord, with negotiations suspended following the death of Iran's Supreme Leader Ayatollah Ali Khamenei during the opening phase of the earlier US-Israeli military campaign.
Iranian parliamentary speaker Mohammad Bagher Ghalibaf accused Washington of violating the agreement, arguing that the United States had abandoned its commitments under the truce.
NATO Secretary General Mark Rutte defended the latest US military action, describing the strikes as necessary and accusing Iran of violating the ceasefire first.
The differing narratives from Washington, Tehran and NATO underscore the growing diplomatic divide over responsibility for the renewed conflict.
The renewed military confrontation immediately rattled global energy markets. Brent crude prices surged about 6 percent following Trump's remarks, climbing above $78 a barrel, the highest level in more than two weeks. Although still below the peaks reached during the earlier phase of the conflict, prices remain significantly above pre-war levels.
The latest sanctions on Iranian oil exports have added to concerns over global supply, particularly as shipping risks in the Strait of Hormuz continue to rise.
With military exchanges continuing and diplomatic channels under severe strain, investors are preparing for prolonged volatility in oil prices, financial markets and global trade.
Attention is now focused on whether back-channel negotiations can prevent a wider regional conflict or whether the collapse of the ceasefire will trigger another prolonged period of military confrontation across West Asia.