Global oil markets surged sharply after US President Donald Trump warned of intensified military action against Iran, raising fears of prolonged conflict and further disruption to global energy supplies.
Brent crude jumped to $107.60 per barrel, while West Texas Intermediate rose about 6.4% to around $106.50, as traders reacted immediately to the remarks. The spike reversed earlier optimism that prices might stabilise.
Trump’s Threat Triggers Market Shock
In a televised address from the White House, Trump signalled that the United States would escalate its offensive in Iran over the coming weeks.
He said the US would complete its strategic objectives “very shortly” and warned that American forces could spend the next “two to three weeks bombing Iran back to the Stone Ages.”
The remarks rattled markets that had been hoping for clarity on a possible exit strategy. Instead, the speech reinforced expectations of a prolonged conflict.
Oil prices, which had briefly dipped below $100 earlier in the day on hopes of de-escalation, surged within minutes of the address.
Strait of Hormuz Disruption Fuels Crisis
The ongoing Iran conflict has severely disrupted global oil and gas flows, particularly through the Strait of Hormuz, one of the world’s most critical energy chokepoints.
Shipments through the strait have largely stalled after Iran threatened to target tankers attempting to pass, in response to US and Israeli strikes that began on 28 February.
Analysts note that nearly one fifth of the world’s oil supply typically passes through this narrow waterway, making any disruption highly sensitive for global markets.
In his speech, Trump said the US no longer depends on Middle Eastern energy and called on other nations to intervene and restore shipping routes.
“To those countries that can’t get fuel, many of which refuse to get involved in the decapitation of Iran… build up some delayed courage, go to the Strait and just take it,” he said.
Markets React as War Outlook Darkens
Energy analysts said the price surge reflects a shift in market expectations.
Alberto Bellorin of InterCapital Energy described the rise as a “clear market reality check following the earlier optimism for an imminent ceasefire.”
He added that Trump’s speech lacked a “concrete timeline” for reopening the Strait of Hormuz and warned that normal supply conditions could take months rather than weeks to return.
Experts say the absence of a clear de-escalation plan has removed hopes of a quick resolution, prompting investors to price in prolonged supply shortages.
Tina Soliman-Hunter from Macquarie University said Trump’s comments signal that the war is likely to continue, reinforcing expectations that oil markets will remain tight.
Asian Markets Slide Amid Energy Fears
The impact was not limited to oil. Stock markets across Asia fell sharply following the speech, reflecting concerns over rising energy costs and economic instability.
Japan’s Nikkei 225 dropped 2.4%, South Korea’s KOSPI fell 4.5%, and Hong Kong’s Hang Seng Index declined 1.3%.
The region remains particularly vulnerable because many Asian economies rely heavily on Middle Eastern oil imports.
Global Energy Risks Intensify
The Iran war has already strained global supply chains, with energy markets experiencing sustained volatility since late February.
Industry observers warn that continued disruption in the Gulf could push oil prices even higher, increasing inflationary pressures worldwide and affecting fuel costs, transportation, and manufacturing.
With no clear timeline for resolution and escalating rhetoric from Washington, markets are bracing for further instability in the weeks ahead.
