SINGAPORE: Oil prices jumped nearly 7% on Thursday after US President Donald Trump said the United States would continue its attacks on Iran without outlining a clear timeline for ending the conflict, raising concerns over prolonged supply disruptions.
Brent crude futures climbed $6.84, or 6.8%, to $108 per barrel by 0643 GMT.
US West Texas Intermediate crude futures rose $6.40, or 6.4%, to $106.52 per barrel.
The surge followed earlier declines of more than $1 in both benchmarks before rebounding after Trump’s televised address, having also closed 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 US military objectives were nearly achieved and the conflict could conclude within two to three weeks, though he provided no firm timeline.
Analysts noted that markets reacted to the absence of “no clear mention of ceasefire or diplomatic engagement” in the speech, according to Priyanka Sachdeva, senior market analyst at Phillip Nova.
She added that if tensions escalate further or maritime risks increase, oil prices could climb even higher as markets factor in potential supply disruptions.
Concerns over maritime security have intensified as the conflict deepens. On Wednesday, an oil tanker leased to QatarEnergy was struck by an Iranian cruise missile in Qatari waters, according to the country’s defence ministry.
The head of the International Energy Agency warned that supply disruptions could begin impacting Europe’s economy as early as April, noting that the region had so far relied on cargoes secured before the conflict began.
“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, chief economist at Rystad Energy.
