Global oil markets surged on Thursday as US President Donald Trump pledged more aggressive military strikes on Iran, intensifying fears over energy supply from the strategically vital Strait of Hormuz.
Benchmark Brent crude jumped about 8 per cent to around $109 per barrel, reflecting growing concern over potential disruptions to fuel shipments from the Middle East.
Trump warned in a Wednesday evening address that the US would hit Iran’s energy and oil infrastructure “extremely hard” over the next two to three weeks, signalling that the conflict could escalate if Iranian leaders fail to comply with Washington’s terms. While he suggested a potential deal could end hostilities, no concrete timeline was given, leaving markets jittery.
Iran responded with a stern warning of “more crushing, broader and more destructive” attacks on the US and Israel. Fears are mounting that Tehran could gain control over Middle East energy flows, having already demonstrated the ability to block the Strait of Hormuz through attacks on oil tankers and Gulf host nations.
Countries including European powers and some 40 others are exploring diplomatic and political measures to restore navigation through the strait, though French President Emmanuel Macron stressed that any actions must be coordinated with Iran.
The conflict has already disrupted regional infrastructure, with attacks reported on Iranian steel plants, research centres, and Gulf facilities. Israel, Saudi Arabia, and the UAE have intercepted missiles and drones, while the US embassy in Baghdad warned of imminent threats from Iran-allied militias.
The surge in oil prices comes amid warnings from the IMF, World Bank, and International Energy Agency that the war is having “substantial, global and highly asymmetric” economic effects. Fuel shortages are already affecting Asia and are expected to ripple into Europe, while investors remain anxious over the uncertainty surrounding the conflict’s duration.
