Trump Abandons Iran Peace Deal, Sending Oil Prices Soaring
Global crude oil prices surged more than 5% on Wednesday after US President Trump announced he would pull out of an interim peace deal with Iran. The decision follows a series of strikes between the two countries, which had been negotiating a ceasefire in June.
The US Central Command said the recent attacks by Iran on three commercial vessels in the Strait of Hormuz were 'unwarranted and dangerous', prompting Trump to cancel the agreement.
Trump described Iranian leadership as 'scum' during a press conference at the NATO summit in Ankara, where he made the announcement. The US had previously granted Iran a sanction waiver as part of the peace deal.
The move is likely to lead to higher oil prices, which could threaten inflation levels in the US. Trump's decision comes ahead of the November midterm elections, and some analysts believe it may also prompt a rate hike by the Federal Reserve.