STORY: Oil surged by more than 5% on Wednesday.

While global stocks and bond prices fell as investors fled from risk assets.

It comes after U.S. President Donald Trump said the memorandum of understanding signed with Iran to end the Gulf conflict was "over".

Trump made the announcement in Ankara ahead of a NATO summit in the Turkish capital.

He added he didn't want to engage with Tehran and called dealing with them a 'waste of time'.

Market sentiment was already jittery after U.S. and Iranian forces had traded attacks in the Gulf.

Brent crude futures leapt the most in a day since late May - it was up 5% to $78 a barrel.

That's well below peaks above $120 seen during the height of the fighting.

But it's enough to inject some fresh inflation risk into the bond market.

Benchmark 10-year U.S. Treasury note yields also rose for a seventh day to a one-month high of 4.56%.

European shares were on track for the biggest one-day drop in the STOXX 600 since mid-March, and U.S. futures were also down.

The stock market has already faced pressure in recent weeks.

Investors have questioned the valuations of some of this year's high-flying semiconductor and AI-linked stocks.