WTI crude oil futures surged more than 3% on Thursday, climbing back above $100 per barrel and snapping a two-day losing streak, as markets parsed President Trump’s latest comments on the conflict with Iran. Trump stated that the US is on course to achieve its military objectives within the next two to three weeks, warning that the campaign would hit Iran “extremely hard” and drive it “back to the stone ages.” His remarks pointed to a possible escalation of military action, even as he noted that diplomatic efforts are still under way. This combination of signals heightened concerns over the timing of any resolution and the risk of further damage to critical energy infrastructure.
At the same time, Fatih Birol, Executive Director of the International Energy Agency, cautioned that some countries could be forced to implement energy rationing as the month’s oil supply shock deepens. In the US, crude inventories increased by 5.5 million barrels last week to 461.6 million, significantly exceeding market expectations.
