Hormuz [Reuters=Yonhap News file photo]

International oil prices surged after U.S. President Donald Trump remarked that the memorandum of understanding (MOU) on ending hostilities with Iran appears to be over.

According to Reuters and the AP, Brent crude jumped 6.3% from the previous session to reach $78.80 per barrel during morning trading on the 8th (local time), while West Texas Intermediate (WTI) rose 6.4% to $75. These are the highest levels seen since June 22.

The Brent crude three-month spread (the price difference between the four-month and one-month contracts) widened to $2.36 per barrel, the largest margin in three weeks. This is a sign of growing market concern over short-term oil supply.

Foreign media reported that President Trump made the comment that the ceasefire MOU "appears to be over" during a meeting with NATO Secretary General Mark Rutte on the sidelines of the NATO summit held in Ankara, Turkey, earlier that day.

Previously, the U.S. Central Command conducted airstrikes on approximately 80 targets within Iran in response to Iran's attack on oil tankers passing through the Strait of Hormuz the day before. In retaliation, Iran struck 85 U.S. military facilities located in countries including Kuwait and Bahrain.

Violeta Todorova, a senior analyst at Leverage Shares, told Bloomberg, "President Trump's remarks show the most serious crack yet in a ceasefire agreement that has been shaky for weeks," adding, "The market had previously viewed the MOU as a permanent de-escalation, but it now looks fragile."

In the bond market, European government bond prices also fell as speculation grew that major central banks would raise interest rates.

The yield on 10-year UK government bonds rose 0.1 percentage points from the previous session to 4.94% per annum. Bond yields move inversely to prices.

The 10-year German government bond yield rose 0.08 percentage points to 3.068%, the highest level since June 11, while the 2-year yield, which is sensitive to European Central Bank (ECB) rate expectations, rose 0.09 percentage points to 2.676%.

Yields on 10-year Italian and French government bonds also rose by 0.12% each following President Trump's remarks.