Oil Prices Surge Over 6% as Trump’s Iran War Threat Escalates Market Fears
Oil prices jumped sharply on Wednesday, with global benchmark Brent crude rising more than 6%, after U.S. President Donald Trump signaled a possible escalation in the ongoing conflict with Iran. The warning rattled global markets and dampened hopes for a near-term resolution, pushing investors toward a risk-off stance as uncertainty deepened.
Brent crude climbed to over $107 per barrel, while U.S. West Texas Intermediate (WTI) surged close to $106, reflecting heightened concerns about supply disruptions. Trump, speaking during a national address, blamed rising oil prices on what he described as Iranian attacks on commercial tankers and neighboring countries, and warned that the U.S. would strike Iran “extremely hard” within the next two to three weeks.
Despite the aggressive tone, Trump also suggested that the conflict might not last long and noted that discussions with Tehran were still ongoing. This mixed messaging has left markets on edge, with investors struggling to determine whether the situation is heading toward escalation or a diplomatic breakthrough. Analysts say this uncertainty is a key driver behind the volatility in oil prices.
A major concern remains the Strait of Hormuz, a critical global oil transit route that has seen traffic nearly grind to a halt since the conflict intensified in late February. The disruption has significantly tightened global supply, contributing to one of the most severe energy shocks in recent years. Experts warn that tanker movement through the strait is unlikely to resume soon, further sustaining upward pressure on prices.
Meanwhile, conflicting claims from both the U.S. and Iran continue to cloud the outlook. Trump previously suggested that Iran had requested a ceasefire, a claim Tehran has denied, insisting that the strategic waterway remains under its control. With both sides sending mixed signals about negotiations and military plans, markets are likely to remain volatile as the world watches for the next move in this high-stakes geopolitical standoff.
source: cnbc