Oil prices climbed nearly 7% on Thursday, as President Donald Trump said the United States would keep up attacks on Iran without committing to a specific timeline to end the war, fanning investor fears about sustained disruptions to supply.
Brent crude futures rose $6.84, or 6.8%, to $108 per barrel by 0643 GMT. U.S. West Texas Intermediate crude futures were up $6.40, or 6.4%, to $106.52 per barrel.
The gains followed an earlier fall of more than $1 in both benchmarks prior to Trump’s televised speech to the nation, after having settled lower in the previous session.
“We are going to finish the job, and we’re going to finish it very fast. We’re getting very close,” Trump said, adding that the U.S. military had nearly achieved its goals in the conflict which would end in two to three weeks, but giving no specifics.
Markets are reacting to the fact that “no clear mention of ceasefire or diplomatic engagement” featured in the speech, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“If tensions intensify or maritime risks increase, oil could test fresh highs as markets price in potential supply disruptions.”
Threats to maritime traffic have grown as the regional conflict intensifies. On Wednesday an oil tanker leased to QatarEnergy was hit by an Iranian cruise missile in Qatari waters, its defence ministry said.
The head of the International Energy Agency also cautioned that supply disruptions would start to affect Europe’s economy in April. The continent had previously been shielded by cargoes contracted before the start of the war.
“Without any mention of a solid ceasefire plan or material off ramp, markets are left continuing to digest the administration’s statements,” said Claudio Galimberti, Rystad Energy’s chief economist.