Oil Prices Soar After Trump Confirms US Strikes on Iran Will Continue
World oil prices surged more than 5% on Thursday after US President Donald Trump said the United States would continue its strikes on Iran, without providing a timeline for when the war would end. The statement fueled market concerns that supply disruptions could persist for longer.
Brent futures rose US$6.33, or 6.3%, to US$107.49 per barrel at 04:07 GMT. Meanwhile, West Texas Intermediate (WTI) gained US$5.28, or 5.3%, to US$105.40 per barrel.
The increase came after the benchmark had fallen more than US$1 before Trump's televised speech and closed lower in the previous session. This price shift reflects market sensitivity to geopolitical developments perceived as posing a direct risk to the energy supply side.
In his speech, Trump declared that the US would "finish the job" and claimed the US military was close to achieving its objectives in the conflict, which he said could end in two to three weeks. However, Trump did not provide any details or a clear timeframe, leading market participants to believe the risk of escalation remains open.
Priyanka Sachdeva, an analyst at Phillip Nova, believes the market is responding to the absence of a clear signal regarding a ceasefire or intelligence channels. She believes that if tensions escalate or shipping risks worsen, oil prices could potentially test higher levels as the market factors in the possibility of supply disruptions.
Risks to maritime traffic are also increasing as regional conflicts escalate. On Wednesday, a tanker chartered by QatarEnergy reported being hit by an Iranian cruise missile in Qatari waters, according to the country's defense ministry. Meanwhile, the head of the International Energy Agency (IEA) warned that supply disruptions risk starting to weigh on the European economy in April, while Rystad Energy's chief economist, Claudio Galimberti, believes the market is still "digesting" the government's statement as there is no solid ceasefire plan or clear de-escalation steps. (asd)
Source: Newsmaker.id
