August M
Global oil markets jumped sharply after the United States signaled further military action against Iran, raising fears of supply disruptions.
Oil prices climbed more than 7% on Thursday following comments from US President Donald Trump, according to Reuters.
Brent crude rose to $108.81 per barrel, while U.S. West Texas Intermediate reached $107.18.
Market reaction
According to Reuters, both benchmarks were on track for their biggest daily gains in three weeks.
The surge followed earlier declines, with prices rebounding after Trump’s televised address.
“We’re going to hit them extremely hard over the next two to three weeks,” Trump said. “We’re going to bring them back to the Stone Ages where they belong.”
Analysts said the lack of any clear diplomatic signal contributed to the market reaction.
Supply fears
Priyanka Sachdeva, a senior market analyst at Phillip Nova, said traders were responding to uncertainty.
According to Reuters, she noted the absence of any mention of a ceasefire or negotiations.
She warned that further escalation or threats to shipping routes could push prices even higher.
Strait concerns
Tensions around the Strait of Hormuz, a critical oil shipping route, are adding to the pressure.
According to Reuters, an oil tanker linked to QatarEnergy was hit by an Iranian missile in regional waters.
Some traders have reportedly paused dealings tied to Middle Eastern benchmarks due to concerns about port access.
Economic impact
The International Energy Agency has warned that supply disruptions could soon affect Europe’s economy.
According to Reuters, earlier shipments had shielded the region temporarily, but that buffer may be ending.
Analysts say the next key factor will be Iran’s response and whether efforts are made to secure shipping routes.
Sources: Reuters
