Trump ends Iran ceasefire, threatens Spain trade cutoff; oil climbs 5%, European markets fall
Donald Trump declared the Iran ceasefire over and threatened to cut all trade with Spain at the NATO summit in Ankara, sending oil prices up over 5% and European stock indices sharply lower.
Ceasefire collapses
Overnight US strikes on Iran ended a fragile truce that had been in place since the war began on 28 February. Speaking at the NATO summit in Ankara alongside Secretary General Mark Rutte, President Trump declared the ceasefire finished.
He called negotiations "a waste of time" and did not rule out further attacks, saying the US would "probably attack hard again tonight."For me it's over. I don't want to negotiate with them, because they are trash. They are sick people, led by sick, bad, violent people. If they had a nuclear weapon, they would use it.
- Overnight US strikes on Iran end fragile truce.
- European markets open; Ibex 35 starts session down 0.65%.
- Trump press conference at NATO summit: declares ceasefire over, threatens Spain.
- Ibex 35 down 2.58% at 19,135 points; Repsol up 3.72%.
- Wall Street opens: Dow -1%, Nasdaq -0.44%, S&P 500 -0.6%.
- Brent crude up 5.3% to $78.12, WTI up 5.39% to $74.24.
Oil markets react
The renewed threat to the Strait of Hormuz, a critical chokepoint for global oil shipments, sent crude prices sharply higher. Brent crude, the international benchmark, rose 5.3% to $78.12 a barrel, briefly touching $79 in early trading. West Texas Intermediate climbed 5.39% to $74.24. Natural gas prices also advanced, up 5% to around $49 per megawatt-hour. Iran announced it was revoking authorization to sell oil, citing "violation of the agreements" on Hormuz that had "rendered key and fundamental parts" of the ceasefire memorandum void.
Trump targets Spain
In the same press conference, Trump singled out Spain for refusing to raise defense spending to 5% of GDP, calling the country "a lost cause" and a "terrible NATO ally."
The remarks immediately hit Spanish equities.Spain is a lost cause. By the way, we no longer want to do any business with Spain. I want it cut off. Spain is a terrible ally in NATO. They don't participate. They don't pay. I don't want to know anything about Spain. Cut all trade with Spain, please, including visits.
European markets slide
The Ibex 35 fell 2.58% to 19,135 points, with nearly all constituents in the red. Banco Santander dropped 4.63%, Acerinox 4.56%, and IAG 3.90%. Repsol bucked the trend, gaining 3.72% on the higher oil price. Other major European indices also declined: Frankfurt's DAX lost 2.36%, Paris's CAC 40 fell 2.14%, London's FTSE 100 shed 1.49%, and Milan's FTSE MIB was down 1.68%. The Euro Stoxx 50 dropped 1.48%.
- Ibex 35
- -2.58 %
- DAX
- -2.36 %
- CAC 40
- -2.14 %
- FTSE 100
- -1.49 %
- FTSE MIB
- -1.68 %
- Euro Stoxx 50
- -1.48 %
Wall Street opens lower
When US markets opened, the Dow Jones Industrial Average fell 1%, the Nasdaq Composite slipped 0.44%, and the S&P 500 declined 0.6%. The combination of geopolitical tension and trade threats weighed on investor sentiment across the Atlantic.
