Oil hits two-week high as collapse of US-Iran understanding stokes supply concerns

Oil prices reached their highest level in two weeks after US President Donald Trump declared that the memorandum of understanding aimed at ending the conflict with Iran was "over", raising fresh concerns about potential disruptions to oil supplies from the Middle East.

Brent crude futures gained $3.14, or 4.23%, to $77.30 a barrel by 1231 GMT. U.S. West Texas Intermediate (WTI) crude rose $2.93, or 4.16%, to $73.37 a barrel. Both benchmark contracts touched their highest levels since June 22 during the session.

Oil prices had already risen about 3% on Tuesday after the United States revoked the general licence that had allowed the sale of Iranian crude.

Speaking on Wednesday, Trump said the memorandum of understanding signed with Iran last month was no longer in effect and added that he did not want to engage with Tehran.

The agreement, brokered by Pakistan, had provided a 60-day period for negotiations between the two sides. However, it came under pressure after the United States carried out fresh strikes on Iran.