Trump says Iran deal is 'over' as U.S. strikes 80 targets; oil jumps, stocks slide

Renewed strikes and tanker attacks

The U.S. Central Command said on Tuesday it had completed a new round of strikes on Iran, hitting air defense systems, command networks, coastal radar, anti-ship missile capabilities and more than 60 Islamic Revolutionary Guard Corps small boats in and near the Strait of Hormuz. The operation followed attacks on three tankers in the waterway, which Washington blamed on Iran. Iran's Revolutionary Guards said they had targeted U.S. military sites in Bahrain and Kuwait in response.

U.S. forces struck Iranian air defense systems, command and control networks, coastal radar sites, anti-ship missile capabilities, and more than 60 Islamic Revolutionary Guard Corps small boats in and near the strait (of Hormuz) to degrade Iran's ability to continue attacking international commerce flowing through the international trade corridor.

At least four oil and gas tankers turned back from the strait after the incidents, ship-tracking data showed. A Qatari LNG tanker and a Saudi-flagged crude tanker were damaged on Tuesday. Maritime authorities raised the threat risk for transiting vessels to "severe".

Trump declares deal over

Speaking in Ankara ahead of a NATO summit, President Trump said he had no interest in engaging further with Iran and that the memorandum of understanding aimed at ending the war was "over". The remarks deepened investor concerns over renewed escalation and marked the latest blow to the fragile ceasefire that began after the U.S. and Israel attacked Iran on February 28.

The ceasefire is on massive life support.

Washington also revoked a license allowing Iran to sell oil, a move ING Bank said heightened the risk of a breakdown in the temporary deal.

While the revocation doesn't fundamentally change oil market dynamics, it's important from a sentiment perspective. It heightens the risk of a breakdown in the temporary deal between the U.S. and Iran.

Market fallout

Brent crude and U.S. West Texas Intermediate both rose more than 5% on Wednesday, extending a 3% rally the previous day. The jump lifted energy stocks in premarket trading: Chevron rose 2.4%, Exxon Mobil gained 3% and ConocoPhillips advanced 2.2%. Broader equity indices fell. Dow E-minis dropped 620 points (1.17%), S&P 500 E-minis lost 0.84% and Nasdaq 100 E-minis shed 1.12%. Canada's S&P/TSX Composite fell 0.89%.

Higher oil prices fed inflation worries, pushing the 10-year U.S. Treasury yield to 4.565%, a one-month high. Markets are pricing in at least one Federal Reserve rate hike by the end of 2026. The Indian rupee weakened, with traders warning a move toward the 95.80-96.00 per dollar zone could not be ruled out if oil risks escalate. Malaysian palm oil futures rose 0.66%, supported by stronger crude and rival edible oils.

Shipping and trade disruptions

U.S. container imports surged 8.2% in June from a year earlier to 2.4 million TEUs, as buyers rushed in goods to avoid potential new tariffs and higher transport costs tied to the conflict. China accounted for most of the growth, with volume jumping 27.4% to 814,474 TEUs. Analysts said many importers moved cargo early to front-run a July 1 increase in ocean freight costs linked to the oil spike.

A queue of more than 10 empty vessels waiting to load at Qatar's Ras Laffan export facility has built up, and over 50 QatarEnergy- and ADNOC-controlled ballast vessels are stationed around the Middle East Gulf, India and the Malacca strait, some with transponders switched off for more than 10 days.