Oil prices rose nearly 7% after President Donald Trump said the United States would continue its attacks on Iran without giving a specific timeframe for ending the war, adding to investor concerns about prolonged supply disruptions.
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Brent crude futures rose $6.84, or 6.8%, to $108 a barrel. U.S. West Texas Intermediate crude futures rose $6.40, or 6.4%, to $106.52 a barrel.
The rise followed a previous drop of more than $1 in both benchmarks before Trump's televised address to the nation, after prices stabilized lower in the previous session, Reuters writes.
“We're going to get the job done, and we're going to get it done very quickly. We're very close,” Trump said, adding that the US military had almost achieved its objectives in the conflict, which will end in two to three weeks, but he did not provide any details.
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Markets are reacting to the fact that the speech “made no clear mention of a ceasefire or diplomatic relations.”
“If tensions escalate or maritime risks increase, the price of oil could hit new highs as markets factor in potential supply disruptions,” said Priyanka Sachdeva, senior market analyst at Phillip Nova .
Threats to maritime traffic have increased as the regional conflict escalates. On Wednesday, an oil tanker leased by QatarEnergy was attacked by an Iranian cruise missile in Qatari waters, the country's defense ministry said.
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The head of the International Energy Agency also warned that supply disruptions would begin to affect Europe's economy in April. Previously, the continent had been protected by cargoes that had been delivered before the war began.
“With no mention of a credible ceasefire plan, markets continue to digest the administration’s statements,” said Claudio Galimberti, chief economist at Rystad Energy.
We should add that on April 1, US President Donald Trump said that Iran had asked for a ceasefire. But during an address to the nation, the American leader announced new strikes on Tehran.
Previously, “FACTS” reported that Iran has a new demand to end the war.
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