Oil prices jumped sharply on Thursday following a televised address by US President Donald Trump, in which he said the United States would continue military operations against Iran. Brent crude futures rose $7.65, or 7.6%, to $108.81 per barrel, while US West Texas Intermediate (WTI) crude gained $7.06, or 7.1%, to $107.18 per barrel. Both benchmarks were set for their largest daily increases in three weeks, though they remain below the peak of over $119 per barrel reached earlier in the conflict.
Trump warned that US forces would “hit them extremely hard over the next two to three weeks” and added that Iran would be “brought back to the Stone Ages.” The president did not outline any measures that could reopen the Strait of Hormuz, a key shipping route for global oil supply, leaving markets uncertain about when normal flows might resume.
Market analysts noted that the sharp rise in crude followed earlier losses of more than $1 per barrel before Trump’s speech. Priyanka Sachdeva, senior market analyst at Phillip Nova, said traders reacted to the absence of “clear mention of ceasefire or diplomatic engagement.” She added that if regional tensions intensify or maritime risks grow, oil could reach fresh highs as the market prices in further supply disruptions.
The Strait of Hormuz has emerged as a flashpoint in the conflict. On Wednesday, an oil tanker leased to QatarEnergy was struck by an Iranian cruise missile in Qatari waters, according to Qatar’s defence ministry. Some trading firms have reportedly stopped dealing with cargoes priced off the Dubai Middle East benchmark, which is used to value nearly one-fifth of global crude supplies, because ports along the strait remain unsafe.
The International Energy Agency warned that ongoing supply disruptions would begin to impact Europe’s economy in April. European countries had initially been shielded by oil shipments contracted before the war began, but further interruptions could strain energy markets and push fuel costs higher.
Rystad Energy noted that markets are waiting to see Iran’s response and the international community’s next steps. “The next critical signal for markets lies in whether President Trump’s pressure will yield action to secure the Strait, which has not yet materialized,” the firm said in a note.
The surge in oil prices also comes amid broader concerns over inflation and economic growth. Analysts say the conflict and disruptions to shipping could continue to drive volatility in energy markets, with potential knock-on effects for global trade and consumer prices.
