Ankara (HRNW)- Global financial and energy markets reacted sharply after US President Donald Trump said that the memorandum of understanding forming the basis of the ceasefire with Iran was no longer effective.
Speaking in Ankara on the sidelines of the NATO Summit, President Trump said that the framework for the ceasefire with Iran had come to an end. His remarks came amid reports of overnight exchanges of attacks between Iran and the United States.
Following Trump’s statement, the price of Brent crude oil rose by around 6 percent to approximately $78 per barrel, reflecting renewed investor concerns over potential disruptions to oil supplies amid rising tensions in the Middle East.
Global financial markets also reacted negatively. Major European stock indices fell by around 1.6 percent, while the US dollar strengthened and government bond yields moved higher.
According to economists, investors fear that any further escalation between Iran and the United States could disrupt global energy supplies and trigger renewed inflationary pressures worldwide.
Market analysts said global financial markets will closely monitor developments in the Middle East over the coming days, as any further military escalation could have a significant impact on the global economy, energy markets, and investor confidence.
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