President Donald Trump announced on Wednesday at the NATO summit in Ankara, Turkey, that the interim peace agreement between the United States and Iran has ended.
The announcement triggered immediate financial instability and a sharp rise in energy markets.
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Global crude oil prices spiked as the benchmark Brent Crude Futures index surpassed $79 per barrel, rising from approximately $72 at the beginning of the week due to fears of renewed conflict in the Strait of Hormuz.
United States stock markets responded with sharp declines.
The S&P 500 futures fell more than 1% to 7,472.25 points, Dow futures dropped 1.3% to 52,506 points, and Nasdaq Futures decreased 1.5% to 28,941 points, alongside similar slumps across European and Asian indices.
Trump's Remarks on Iran and NATO
Speaking alongside NATO Secretary General Mark Rutte, Trump expressed his assessment of the memorandum of understanding signed by both nations last month when asked by reporters if the agreement was dead.
"To me, I think it's over," said Trump.
Trump further detailed his unwillingness to continue diplomatic engagements with the current Iranian leadership, criticizing their actions following the funeral of Ayatollah Ali Khamenei.
"They're vicious, violent people," said Trump.
According to Trump, the United States allowed the funeral proceedings to take place, but Iranian forces responded by launching attacks on maritime vessels.
He indicated that further negotiations would not yield results, calling them "a waste of time."
Trump accused Iranian negotiators of maintaining contradictory public and private stances, alleging they would secretly consent to terms regarding nuclear weapons restrictions while denying those agreements to the press.
