Israel, Iran Clash Sends Oil Prices Higher, But Donald Trump’s Ceasefire Claim Reverses Gains

Oil prices rose after new clashes between Israel and Iran increased concerns about how the conflict could affect global oil supplies. The latest attacks came just in time when there were hopes that the violence would stay paused for a longer period. American and Iranian officials recently reached an early agreement to extend a ceasefire, but the discussion has yet to be completed.

As concerns grew, oil prices rose sharply but later came down from their peak levels. Prices eased after US President Donald Trump said that both Israel and Iran wanted an immediate ceasefire and talks were in progress. He also stated that the blockade would remain in place until a final agreement was reached.

According to CNBC, the price of Brent crude oil, which is a major global oil benchmark, increased by 1.2% and reached $94.32 for a barrel of oil. At the same time, the price of West Texas Intermediate (WTI) crude oil rose 1.09% to $91.48 per barrel. This means oil became more expensive in both international and US markets.

The numbers came down after Donald Trump took to Truth Social and wrote, “Both sides, Israel and Iran, are looking to do an immediate CEASEFIRE. Final negotiations on Peace are proceeding, subject to ignorance or stupidity getting in its way. The Blockade will remain in place, and in full force and effect, until a Final Deal is reached. Things should move quickly. Thank you for your attention to this matter.”

The Israel Defense Forces stated on X that their air force attacked military locations in western and central Iran on Monday. Israel claimed they were forced to take such extreme steps after Iran fired missiles at Israel. According to Israel, this was the first missile attack from Iran since both sides agreed to a ceasefire in April, which now raises concerns that tensions between the two countries could increase again.

The Israeli Air Force struck military targets belonging to the Iranian terror regime in western and central Iran a short while ago.

— Israel Defense Forces (@IDF) June 8, 2026

There is uncertainty about when oil will start moving normally again through the Strait of Hormuz, a key route that carries a large share of the world's oil and natural gas.