Stoking fears of protracted delays to oil supplies, President Donald Trump warned the US would continue strikes on Iran, sending oil prices soaring by over 7% on Thursday in London. As of 0902 GMT, a barrel of Brent crude futures LCOc1 was selling for $108.81, a 7.6 percent increase. Futures for US West Texas Intermediate oil CLc1 were $107.18/bbl, up $7.06/bbl, or 7.1%.
Despite still below the $119/bbl highs reached earlier in the war, both benchmarks were on track for their largest daily increases in three weeks, in terms of both absolute and percentage terms. The gains came after both contracts lost over $1 prior to Trump’s national televised address.
Trump warned that the following two to three weeks will be “very hard” for the enemy. We will return them to the Stone Ages, their rightful place. He was vague on what might be done to open the Strait of Hormuz again. According to Priyanka Sachdeva, a senior market analyst at Phillip Nova, the markets are responding since the speech did not include any “clear mention of ceasefire or diplomatic engagement.
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