Global Brent crude prices surged 5%, reaching $106.16 a barrel, immediately after the highly anticipated address by US President Donald Trump. According to Reuters, the president’s remarks triggered a spike because investors did not receive the expected signals of de‑escalation in the Middle East conflict.
The oil market reacted to Trump’s promise to carry out “more aggressive strikes” on Iranian targets. Traders’ hopes for a quick end to the war and the restoration of stable hydrocarbon supplies were extinguished. The situation is worsened by the lack of any guarantees about the reopening of the Strait of Hormuz, a key shipping artery through which a significant share of the world’s oil exports passes.
In his address, Donald Trump stressed the military threat from Tehran. The president warned that Iran is rapidly increasing its stockpiles of conventional ballistic weapons, making an immediate exit from armed confrontation impossible. Financial institutions interpreted this rhetoric as a signal to prepare for a prolonged crisis in the Persian Gulf.
Analysts say that current dynamics reflect deep disappointment among market participants who had hoped for diplomatic progress. Instead, uncertainty over the security of energy routes has only intensified. Traders have begun actively pricing in the risk of further supply cuts, which could push oil prices to new multi‑year highs in the coming weeks.
