Breaking: Trump is playing with economic fire by calling the peace deal with Iran ‘over’ 7 July

Trump Iran peace deal

Key Points

• U.S. President Donald Trump said that America’s ceasefire with Iran was over, telling the NATO summit in Ankara, Turkey: “I don’t want to deal with them anymore.”
• Later, Trump said the U.S. will “very probably” attack Iran “hard again tonight.”
• Trump’s comments came after the U.S. launched a series of retaliatory strikes against Iran, with both sides accusing each other of violating the ceasefire.

U.S. President Donald Trump announced the end of America’s ceasefire with Iran during a NATO summit in Ankara, Turkey, stating, “I don’t want to deal with them anymore.” Following this declaration, he indicated that the U.S. would “very probably” launch significant military action against Iran that night. These statements coincided with recent tensions, as the U.S. had already initiated a series of retaliatory strikes against Iran. Both nations are mutually accusing one another of breaching the terms of the ceasefire, escalating the conflict between them.

The thing with Trump saying the ceasefire with Iran is over is that it can cause problems for the economy. This is especially true when it comes to the price of oil and how much oil is available. For a while things were calm after Trump and Iran agreed to a truce on June 18. Because of this oil prices went down. Some ships were able to go through the Strait of Hormuz again.. This calm period was not long enough to fix the big problem with oil supplies.

The United States does not have emergency oil stored away to prevent economic problems from happening. This is similar to what happened during the Great Depression when President Hoover was in charge.

Even though Trump has said he might block the Strait of Hormuz with navy ships again which would cause more problems with oil supplies the strait is still open for ships to go through.. There is still a chance that things could get worse because of fighting. The problems between the United States and Iran make it hard to know what will happen in the future and how it will affect the economy. Trump has said recently that he is willing to use military force, which could make things even worse. Trumps actions with Iran are causing a lot of uncertainty about what Trump will do, with Iran.

Barrels of time

Over the three weeks a lot of oil has leaked from the Strait of Hormuz. We are talking about 200 million barrels of oil. This is the amount of oil that the whole world uses in two days. Andy Lipow, who is the president of Lipow Oil Associates said this. What is really important to note is that about 60 million of these barrels are from Iran. The Trump administration has put sanctions back in place. This means buyers only have ten days to buy this oil before they cannot buy it anymore.

The Strait of Hormuz is still open.. There is a big risk that affects how much it costs to ship oil. If you want to transport oil from outside the Strait of Hormuz to Asia it will cost around $4 million to $5 million.. If you transport oil from inside the Strait of Hormuz to Asia it will cost between $8 million to $10 million. This is double the cost.

Vessels at the Strait of Hormuz, as seen from Musandam, Oman, on July 8, 2026

Not many ships are going through the Strait of Hormuz now. In fact only about a third of the number of ships are going through. We know this because least four oil and gas tankers tried to go through the Strait of Hormuz but turned back. The price of oil has gone up a lot because of this. Brent crude futures went up by 4 percent. It is now trading at, below $78. This is the price since the Memorandum of Understanding was signed. The Strait of Hormuz is very important for oil to flow through. Even though it is a little harder to get oil through the Strait of Hormuz oil is still flowing through it.

The inventory problem

The oil inventory problem in the United States is a deal especially with the war going on and affecting the flow of crude oil. The Strategic Petroleum Reserve, which is like an emergency stash of oil for America is running really low. It currently has 319.5 million barrels of oil which’s a lot less than it used to have. In fact it is 23% less than it was before the war started. It is the lowest it has been since it was created in 1983 during the Reagan administration. This makes the United States very vulnerable to problems like really bad weather or if the Strait of Hormuz gets blocked again.

The oil inventory problem is not just with the Strategic Petroleum Reserve it is also a problem with the oil stockpiles all over the country. The stockpiles in Cushing, Oklahoma which’s a major hub for oil transportation are very low. Even though they went up a bit last week they are still under 20 million barrels. This is a deal because when the stockpiles are that low it is hard for Cushing to send crude oil to refineries all over the country.

The fact that the oil inventory situation is so bad has gotten the attention of economic leaders, including former President Trump. He is worried that if the oil inventory problem is not fixed it could cause economic problems like what happened during the Great Depression. He even warned about an economic disaster if things do not get better which shows how serious the oil supply crisis is.

Because of this investors are being very careful. There has not been a big reaction in the US stock market. However the bond market has been affected, with the 10-year Treasury yield going, up to 4.57%, which’s the highest it has been since late May when oil prices were really high because of the war. Former President Trump often pays attention to how investorsre feeling and it can influence his decisions especially when it comes to bond yields and the oil inventory problem and the Strategic Petroleum Reserve.

Military Strikes and Sanctions Push U.S.-Iran Tensions Higher

The United States and Iran are having some problems with each other right now. This is because they are both saying that the other side is not following the rules they agreed on month.The United States military did some attacks on Iran because some commercial ships were attacked in the Strait of Hormuz. They hit a lot of places in Iran like the systems they use to defend themselves from the air their command centers and the missiles they use to attack ships.

The United States Central Command said they also hit than 60 small boats that belong to Irans Revolutionary Guard. They did this to make it harder for Iran to threaten ships that are just trying to sail through waters.

The United States says they did this because Iran was being very aggressive and threatening ships. The United States Treasury Department also stopped letting Iran sell oil to some countries, which made the price of oil go up a lot. This happened after President Trump talked about what’s going on with Iran.The main point that officials from the United States are trying to make is that Iran is not behaving and that what they are doing is very wrong and, against what they agreed to before. The United States and Iran situation is very serious.