Oil Prices Surge to Nearly $110 a Barrel as Trump Vows Continued Strikes on Iran
LONDON, April 2 - Oil prices surged to approximately $110 a barrel on Thursday, driven by President Donald Trump's declaration that U.S. military actions against Iran would persist, igniting fears of extended disruptions in oil supply.
Brent crude futures climbed by $7.96, or 7.9%, reaching $109.12 per barrel at 1302 GMT. Meanwhile, U.S. West Texas Intermediate crude futures jumped $12.48, or 12.5%, to $112.60 per barrel, marking their highest levels since March 9 and poised for the largest absolute price increase since 2020.
Despite the rise, both benchmarks remained below the nearly $120 per barrel highs seen earlier in the conflict.
“We’re going to hit them extremely hard over the next two to three weeks,” Trump stated emphatically. “We’re going to bring them back to the Stone Ages where they belong.”
No specifics were provided regarding potential actions that could facilitate the reopening of the Strait of Hormuz.
Market analysts noted a lack of “clear mention of ceasefire or diplomatic engagement” in Trump's remarks, according to Priyanka Sachdeva, a senior market analyst at Phillip Nova.
“If tensions escalate or maritime risks heighten, oil prices could reach new peaks as markets brace for possible supply interruptions,” she added.
BRITAIN HOSTS TALKS ON REOPENING HORMUZ
A virtual meeting involving around 40 nations is being hosted by Britain to explore options for reopening the Strait of Hormuz, although the United States is not scheduled to participate.
Some traders have reportedly ceased transactions involving cargoes priced against the Dubai Middle East benchmark, which typically values nearly one-fifth of global crude supply, due to the inaccessibility of ports within the Strait of Hormuz.
OPEC+ is expected to deliberate on a potential increase in oil output during a meeting on Sunday, sources indicate. This move would enable member countries to add more barrels if the Strait of Hormuz reopens but is unlikely to significantly boost supply in the interim.
In Russia, strikes by Ukraine on port infrastructure, pipelines, and refineries have diminished export capacity by 1 million barrels per day, accounting for one-fifth of total capacity, setting the stage for potential production cuts.
The head of the International Energy Agency cautioned that supply disruptions are projected to impact Europe’s economy starting in April, following a period where the region was insulated by cargoes contracted prior to the onset of the conflict.
