Oil prices jumped sharply on Thursday after US President Donald Trump renewed threats against Iran without providing a clear plan for ending the conflict. Brent crude briefly reached $108 per barrel, while West Texas Intermediate (WTI) rose 6.4 percent to around $106.50 a barrel. The announcement sent stock markets in Europe and Asia lower, reflecting investor concerns over prolonged supply disruptions.
Trump addressed the nation from the White House, saying the US would complete its strategic objectives “very shortly” and would spend the next two to three weeks hitting Iran “extremely hard” and bringing the country “back to the Stone Ages.” He offered no concrete details on a timeline for ending the war or reopening the critical Strait of Hormuz, through which a significant portion of global oil shipments pass.
Prior to the speech, oil prices had briefly dipped below $100 on hopes of a potential ceasefire. The president, however, reiterated earlier points, prompting a swift rebound in prices. Analysts described the surge as a market reality check, reflecting the fading expectation of a quick resolution. Alberto Bellorin of InterCapital Energy said, “Trump’s speech lacked a concrete timeline for the reopening of the Strait of Hormuz. A return to normal now looks months away rather than weeks.”
The conflict has heavily disrupted global energy flows. Iran has threatened to attack tankers crossing the Strait of Hormuz in retaliation for US-Israeli strikes that began on 28 February. Trump said the US did not need Middle Eastern energy and encouraged other nations to intervene to free up shipments, warning, “To those countries that can’t get fuel… build up some delayed courage, go to the Strait and just take it.”
European markets reacted quickly. The UK’s FTSE 100 opened slightly lower and remained steady mid-morning, while France’s CAC 40 fell 1 percent and Germany’s DAX dropped 2 percent. Asian markets also declined, with Japan’s Nikkei 225 down 2.4 percent and South Korea’s Kospi falling 4.5 percent, reversing earlier gains.
Experts warned that energy flows may take years to stabilize. Anne-Sophie Corbeau, former head of gas analysis at BP and now at the Center on Global Energy Policy at Columbia University, said repairing damage to the Gulf’s energy infrastructure could take three to five years. She noted that additional costs for using the Strait of Hormuz, currently around $2 million per ship, could remain substantial if the disruption continues.
Asia is particularly vulnerable to these disruptions, as the region relies heavily on Middle Eastern oil and gas supplies. The ongoing uncertainty over the Iran conflict has intensified concerns over rising energy costs and potential inflation pressures worldwide.
