U.S. President Donald Trump declared the interim ceasefire with Iran “over” on Wednesday, following new Iranian attacks on U.S. military bases in Bahrain and Kuwait. The remarks, made at a NATO summit in Ankara, sent oil prices surging 5% to $78 a barrel and triggered a global stock market decline.
Renewed Hostilities Shatter Ceasefire Hopes
The flare-up began after U.S. forces struck Iranian targets in response to attacks on tankers in the Strait of Hormuz. Iran retaliated by targeting U.S. military sites in Bahrain and Kuwait, according to Iran’s Revolutionary Guards (IRGC). The attacks further undermined the shaky ceasefire agreement signed on June 17, which had aimed to end the war that started with U.S.-Israeli airstrikes on Iran on February 28.
“To me, I think it’s over. I don’t want to deal with them,” Trump told reporters in Ankara. “They’re scum. They’re sick people. They’re led by sick people. As far as I’m concerned, it’s just a waste of time dealing with them.”
Oil Prices Jump, Global Markets React
Brent crude futures leapt 5%, the biggest daily gain since late May, reaching $78 a barrel. While far below the peaks above $120 seen during the height of the conflict, the spike injected fresh inflation risk into bond markets, as months of fighting have depleted global oil inventories. Shipping data showed at least four oil and gas tankers turned back rather than risk transiting the Strait of Hormuz, a vital supply route.
Iran and U.S. Trade Blame
Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait and shot down a U.S. MQ-9 drone attempting to interfere. The U.S. Central Command (CENTCOM) confirmed it had struck more than 60 small boats used by the IRGC, calling the operation “absolutely necessary” to impose a heavy cost for violating the ceasefire. “The unwarranted aggression by Iranian forces is a clear and dangerous violation of the ceasefire and undermines freedom of navigation,” CENTCOM said in a statement.
NATO Secretary General Mark Rutte backed the U.S. strikes, calling them “absolutely necessary.” EU foreign policy chief Kaja Kallas said on X: “The exchanges of fire between the U.S. and Iran further complicate already fraught talks to end the war. Iran’s attacks on Bahrain and Kuwait are unacceptable.”
Iran’s top joint military command, Khatam al-Anbiya Central Headquarters, condemned the U.S. strikes as a “blatant act of aggression” and threatened a “crushing response.” Parliament speaker Mohammad Baqer Qalibaf, a top negotiator, accused the U.S. of breaching the ceasefire through military strikes, renewed oil sanctions, violations of Iranian “adjustments” in the Strait of Hormuz, and Israeli attacks against Lebanon. “The era of bullying and extortion is over,” Qalibaf said on X. “We don’t fold.”
Strait of Hormuz Control Key to Leverage
Iranian media reported explosions in the main oil hub of Kharg Island, on Qeshm Island, and in the southern port cities of Sirik and Bandar Abbas. Press TV reported several blasts in Kharg Island, from which Iran exports 90% of its crude oil. CENTCOM made no mention of Kharg Island. A U.S. official told Reuters that strikes targeted Iranian air defence systems, coastal surveillance, surface-to-air missiles, anti-ship cruise missiles, and drone launch sites. No civilian deaths were reported in Iran.
Control of the Strait of Hormuz has given Tehran immense leverage, analysts say, allowing it to force a stalemate with the world’s most powerful military. Iran uses attacks on ships to underscore that leverage as it negotiates a long-term peace deal. Under the interim agreement, the U.S. Treasury had issued a June 22 general licence allowing Iranian oil sales through August 21, but revoked it on Tuesday, giving Iran until July 17 to wind down transactions. Iran’s foreign ministry condemned the move as a breach of the framework agreement and said Washington would bear responsibility for the consequences.
