Global Oil Prices Surge Following Trump's Remarks on Iran Conflict

Washington D.C. Global crude oil prices rose on Thursday. The international oil market reacted sharply after U.S. President Donald Trump announced that the conflict with Iran would continue for several more weeks. Crude oil prices increased significantly immediately following his address.

The international benchmark for crude oil, Brent crude, has risen by more than 6 percent. As of 10:40 AM Nepali time, when this report was prepared, the price of Brent crude had climbed by 7 percent to reach $107.19 per barrel.

At the same time, the U.S. benchmark, West Texas Intermediate (WTI), was trading at $105.04 per barrel, up by 6.10 percent.

Since the Iran war began on February 28, Iran has effectively paralyzed the Strait of Hormuz. This has triggered a global energy crisis, driving up the prices of oil and gas. In his address on Wednesday, Trump warned that if Iran does not accept U.S. demands, he would authorize bombing attacks on their power generation facilities.

Analysts suggest that his aggressive rhetoric has further destabilized the energy market. In his speech, Trump reiterated his claim that the U.S. is not dependent on the strait.

Trump also signaled that the U.S. can proceed without that route and suggested that the responsibility for securing the passage lies with the countries that rely on it for oil imports.

Meanwhile, the market reaction was immediate following Trump's speech. Negative signs have also appeared in the U.S. stock market, with both the Dow Jones Industrial Average and S&P 500 futures declining.