Oil prices surged after President Donald Trump declared the U.S.-Iran ceasefire over, citing Iranian attacks on commercial vessels in the Strait of Hormuz and American military sites. U.S. benchmark crude climbed to $75.80 a barrel, its highest level in more than two weeks, while Brent crude approached $79.

Tanker traffic through the strait has essentially stopped, according to Jorge Leon at Rystad Energy, reflecting acute risk perception. U.S. gasoline averaged $3.80 per gallon Wednesday, up a penny from Tuesday but still well below the $4.16 monthly average. The Strategic Petroleum Reserve holds 319.5 million barrels — its lowest since 1983 — limiting the administration's capacity to calm markets. "The drawdown of strategic stocks means there is a lot less ammunition in Trump's holster," said Michael Lynch of the Energy Policy Research Institute.

Shipping faces renewed disruption. Maersk and Hapag-Lloyd's Gemini joint venture had planned to resume Suez Canal service after Red Sea stability, but Judah Levine at Freightos warns the deterioration could jeopardize that restart. IMO Secretary-General Arsenio Dominguez urged flag states to avoid the strait. Some vessels are going "dark" to transit, while others use alternate routes through Iranian or Omani waters.

The episode underscores how fragile energy markets remain. With strategic reserves depleted and critical chokepoints under threat, any escalation transmits quickly to pump prices and global trade costs. The ceasefire's on-off nature suggests volatility will persist, leaving consumers and shippers exposed to sudden supply shocks.