Oil prices surged around 7% after US President Donald Trump stated that the US would continue its attacks on Iran over the next two to three weeks.
President Trump did not commit to a timeframe for concluding the conflict, raising concerns among investors about ongoing supply disruptions, reported Reuters.
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Brent crude futures increased by $7.65, reaching $108.81 per barrel, while US West Texas Intermediate (WTI) crude futures rose by $7.06 to $107.18 per barrel, as of 09:02 GMT.
These gains followed a slight decline in both benchmarks, which had dropped by more than $1 before Trump’s televised address reassured the nation.
Trump in his Wednesday evening prime-time speech said: “I can say tonight that we are on track to complete all of America’s military objectives shortly, very shortly.”
He also indicated the conflict might escalate if Iranian leaders failed to meet US demands during negotiations, hinting at potential strikes on Iran’s energy infrastructure, Reuters reported.
In response, Iran’s military warned the US and Israel of “more crushing, broader and more destructive” attacks.
Ebrahim Zolfaqari, a spokesperson for the Khatam al-Anbiya central headquarters, stated that the conflict would persist until Tehran’s adversaries felt “permanent regret and surrender,” according to Iranian media.
Tensions in the region have heightened threats to maritime traffic.
An Iranian cruise missile struck an oil tanker leased by QatarEnergy in Qatari waters on Wednesday, according to the nation’s defence ministry.
Qatar faced three missile attacks from Iran, two were intercepted while the third damaged the Aqua 1 fuel oil tanker, with casualties caused, claimed Reuters.
Located 17 nautical miles north of Qatar’s Ras Laffan industrial area, the vessel suffered damage above the waterline, but no environmental harm was reported, stated UK Maritime Trade Operations (UKMTO) and QatarEnergy.
Furthermore, Fatih Birol, the head of International Energy Agency (IEA), warned that supply disruptions might begin to impact Europe’s economy by April, as prior contracts had previously insulated the continent from the immediate effects of the conflict.
