Global crude oil prices surged more than 6 per cent on Wednesday, 8 July after US President Donald Trump declared the ceasefire between Washington and Tehran effectively over, following a fresh round of American military strikes on Iran. The announcement intensified fears over energy supply disruptions from West Asia, triggering a sharp rally across oil benchmarks.

International benchmark Brent crude climbed as much as 6.52 per cent, or $4.69, to trade near $80 a barrel. US West Texas Intermediate (WTI) advanced more than 6 per cent, or $4.85, to around $75 a barrel.

What Trump Said in Ankara

Speaking on the sidelines of the North Atlantic Treaty Organization (NATO) Summit in Ankara, Trump told reporters that the US had carried out overnight strikes against Iran in response to what he described as Iranian attacks on commercial vessels transiting the Strait of Hormuz.

In unusually blunt remarks, Trump said: 'To me, I think it's over. I don't want to deal with them anymore. They're scum...They are sick people. They're led by sick people. They are vicious, violent people and if they had a nuclear weapon, they would use it. As far as I am concerned, it's over. I'll speak to our negotiators. They want to negotiate. As far as I'm concerned, it's just a waste of time dealing with them. They're liars. We make a deal...Everyone's agreed. No nuclear weapon. We make a deal. They go outside and talk to the press. They say we never even talked about it. There's something wrong with them. They're cuckoo. As far as I'm concerned, it's over.'

Trump also said he no longer wished to pursue negotiations with Tehran, expressing deep scepticism about the prospects of any future agreement with Iranian leadership.

Strait of Hormuz: The Flashpoint

The renewed tensions centre on the Strait of Hormuz, one of the world's most critical oil shipping chokepoints, through which roughly 20 per cent of global crude supply transits. A series of attacks on commercial vessels passing through the strait preceded the latest US military action, according to Trump's account. Any sustained disruption to the waterway would have outsized consequences for Asian importers, including India, which depends heavily on West Asian crude.

This comes amid a sharp reversal from earlier market expectations of ample supply, after OPEC+ had announced higher production quotas and major Middle Eastern producers had ramped up output. The geopolitical escalation has effectively overridden those supply-side signals.

Impact on Indian Markets

The crude price spike weighed heavily on Indian investor sentiment, triggering broad-based selling across domestic equities. As of 3 pm IST, the BSE Sensex had fallen around 1,900 points, or more than 2 per cent, to 76,259, while the Nifty50 was down nearly 600 points, or over 2 per cent, at 23,805.

The Indian rupee also weakened, slipping 20 paise to 95.16 against the US dollar in early trade, opening at 95.15 against the greenback. A weaker rupee compounds the import cost burden for India, which is among the world's largest crude oil importers.

What Happens Next

Markets will closely track any further US military action, Iranian retaliation, and the fate of shipping through the Strait of Hormuz. Analysts warn that if the waterway faces sustained disruption, Brent could push well above $80. For India, elevated crude prices risk widening the current account deficit and stoking domestic fuel inflation, putting additional pressure on the Reserve Bank of India (RBI) at a time when monetary policy space is already constrained.