President Donald Trump’s announcement of intensified attacks on Iran over the next two to three weeks has caused international oil prices to surge by approximately 5%.
As of 10:00 p.m. on Wednesday, West Texas Intermediate (WTI) futures were trading at 104.21 USD per barrel on the New York Mercantile Exchange, marking a sharp 4.1% increase.
Brent Crude futures jumped 5%, breaching the $106 mark to reach 106.42 USD per barrel.
Oil prices had been declining prior to Trump’s speech but rebounded dramatically following his remarks.
In his address, Trump warned that over the next two to three weeks, it will strike Iran hard, pushing them back to the Stone Age, emphasizing his intention to swiftly conclude the operation.
He cautioned that if negotiations fail, the U.S. could target all of Iran’s power plants and potentially attack oil facilities, which he described as the easiest targets, to eliminate Iran’s chances of reconstruction.
The President’s hawkish statements appear to have triggered a widespread surge in international oil prices.
Before the speech, expectations of a conciliatory gesture had led to a rally in U.S. stocks and a decline in oil prices.