Trump declares Iran ceasefire agreement ended amid new strikes

President Donald Trump announced at the NATO summit in Ankara that the memorandum of understanding with Iran is "over" following a night of U.S. strikes against Iranian targets. The attacks, described by U.S. Central Command as retaliation for Iranian strikes on commercial vessels in the Strait of Hormuz, were followed by Iran’s Islamic Revolutionary Guard Corps launching missiles and drones at 85 U.S. military sites in Bahrain and Kuwait.

NATO Secretary General Mark Rutte said the U.S. action was "absolutely necessary" and defended the strikes to reporters. The escalation coincided with the start of the NATO leaders' meeting, adding pressure to discussions on European defense spending and the alliance’s support for Ukraine.

Oil markets reacted sharply, with Brent crude rising about 6.4% to $78.93 a barrel and U.S. WTI up 6.5% to $74.99 a barrel. Global equity indexes fell, and analysts noted that higher oil prices could revive inflation concerns.

U.S. Defense Secretary Pete Hegseth cancelled a planned visit to Israel amid the heightened tensions. Iranian officials accused Washington of breaching the agreement and of "treaty-breaking," while U.S. officials framed the strikes as punishment for attacks on shipping.

The dispute comes as Trump has repeatedly criticized NATO allies for insufficient defense spending and has voiced interest in taking control of Greenland, prompting responses from European leaders defending the territory.