Key Highlights
- Crude oil rallied almost 7%, pushing Brent above $107 and WTI approaching $106 per barrel
- President Trump vowed to strike Iran with overwhelming force during the next two to three weeks
- Equity futures dropped over 0.8% following the Wednesday evening presidential address
- Trump called on international partners to spearhead efforts to reopen the Strait of Hormuz
- Tehran’s Foreign Ministry rejected Trump’s assertion that Iran had sought a ceasefire agreement
Crude oil markets experienced a dramatic surge of nearly 7% on Thursday following President Trump’s declaration that the United States would intensify its military campaign against Iran during the coming fortnight. The rally followed Trump’s nationally televised address Wednesday evening.
Brent crude benchmark prices climbed to approximately $107.86 per barrel after previously dipping below the $100 threshold. West Texas Intermediate futures advanced to roughly $106.77 per barrel. Both oil benchmarks initially opened Thursday’s session in negative territory before staging a sharp reversal.
U.S. stock index futures tumbled more than 0.8% in the aftermath of the presidential speech. Futures contracts tied to the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all registered losses as of 10:15 p.m. ET on Wednesday.
During his address, Trump informed Americans that military operations against Iran would be conducted with extreme force during the upcoming weeks. He emphasized that the primary objective is preventing Tehran from developing nuclear weapons capabilities.
“We’re going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages where they belong,” Trump said during the address.
Trump had earlier indicated to journalists on Tuesday that American forces could withdraw from Iran within a two to three-week timeframe, potentially without securing a formal diplomatic agreement. While he maintained that timeline during Wednesday’s speech, he provided no indication that a ceasefire was imminent.
Prior to delivering his address, Trump claimed on social media that Iran’s “new regime president” had requested a ceasefire. Iran’s Foreign Ministry swiftly refuted this claim, with state-controlled media outlets reporting that Tehran had made no such overture.
Strait of Hormuz Remains Uncertain
Trump indicated that international allies should assume primary responsibility for restoring normal operations through the Strait of Hormuz. The narrow 21-mile passage serves as a vital energy transit corridor, facilitating the movement of approximately one-fifth of global oil supplies.
“We will be helpful, but they should take the lead,” Trump said, adding that other countries “must cherish it” and “must grab it.” He also suggested the strait could “open up naturally.”
The strategic waterway continues to face disruptions with no definitive timeline established for when petroleum shipments might resume normal patterns. Market participants remain anxious about future supply availability.
Energy Markets and Equity Performance
Trump further asserted that the United States has achieved “total independence” from Middle Eastern oil supplies. Nevertheless, market experts have challenged this characterization, noting that global oil pricing mechanisms ensure interdependence regardless of domestic production levels.
The Energy Information Administration disclosed that domestic crude stockpiles increased by approximately 5.5 million barrels during the week concluded March 27, surpassing market expectations.
Equity futures continued trading in negative territory as investors assessed the implications of a protracted military engagement and its potential impact on worldwide petroleum availability.
