Oil rises almost 7% after Trump says US will maintain attacks on Iran

Oil prices rose nearly 7% on Thursday after US President Donald Trump said the country would continue attacks on Iran without committing to a specific timetable for ending the war, fueling investor fears about continued supply disruptions. Brent crude futures rose $6.84, or 6.8%, to $108 per barrel. US West Texas Intermediate crude oil futures rose $6.40, or 6.4%, to $106.52 per barrel. The rally followed an earlier drop of more than $1 in both benchmarks ahead of Trump’s televised address to the nation. “We’re going to finish the job, and we’re going to finish it very quickly. We’re getting very close,” Trump said, adding that the US military was almost achieving its objectives in the conflict, which would end in two or three weeks, but without giving specific details. Markets are reacting to the fact that “no clear mention of ceasefire or diplomatic engagement” appeared in the speech, said Priyanka Sachdeva, senior market analyst at Phillip Nova. “If tensions intensify or maritime risks increase, oil could test new highs as markets price in potential supply disruptions.” Threats to maritime traffic have grown as regional conflict intensifies. On Wednesday, an oil tanker leased to QatarEnergy was hit by an Iranian cruise missile in Qatari waters, according to the country’s Defense Ministry. The head of the International Energy Agency also warned that supply disruptions would start to affect Europe’s economy in April. The continent had already been protected by contracted cargoes before the war began. “Without any mention of a solid ceasefire plan or material outflow, markets continue to digest the government’s statements,” said Claudio Galimberti, chief economist at Rystad Energy.

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