Oil prices surge more than 5% as Trump signals more strikes on Iran

Oil prices jumped by more than 5% on Thursday (April 2) after US President Donald Trump said Washington would continue striking Iran, including energy and oil targets, over the coming weeks, while offering no firm timetable for an end to the war.

According to Reuters, Brent crude futures rose US$6.33, or 6.3%, to US$107.49 a barrel by 0407 GMT, while US West Texas Intermediate crude gained US$5.28, or 5.3%, to US$105.40.

The rebound came after both benchmarks had fallen by more than US$1 earlier in the day, ahead of Trump’s televised address, and had also settled lower in the previous session.

In his speech, Trump said the US military had nearly achieved its objectives in the war with Iran and that the conflict would end soon, but he stopped short of setting out a clear timeline.

Instead, his remarks signalled that military action would continue for now, undermining hopes of an imminent de-escalation.

Concerns over energy supply and shipping security have also intensified. On Wednesday (April 1), an oil tanker leased by QatarEnergy was hit by an Iranian cruise missile in Qatari waters, according to Qatar’s Defence Ministry, adding to concerns over maritime traffic in the region.

The head of the International Energy Agency warned on Wednesday that supply disruptions were expected to begin affecting Europe’s economy in April. Until now, Europe had largely been protected by cargoes contracted before the conflict began.