Oil jumped 10% on Thursday after U.S. President Donald Trump cautioned about potential additional military actions against Iran within the next two to three weeks, reducing optimism for a quick de-escalation of the conflict.
Brent crude futures shifted from multi-percentage losses to a gain of approximately 7.9%, trading above $109 per barrel after falling below $100 earlier in the session.
US benchmark West Texas Intermediate crude reversed earlier losses, rising 10% to trade near $109 per barrel.
In his speech, the President told the American public that the conflict is “nearing completion” and estimated another two or three weeks of involvement. Trump indicated the US is ready to escalate its military response and warned he could take Iran “back to the stone ages.”
President Trump also stated the rise in oil prices was attributed to the “Iranian regime launching deranged terror attacks against commercial oil tankers and neighboring countries that have nothing to do with the conflict.”
He said discussions with Tehran “are ongoing.”
Trump concluded, “We are going to finish the job, and we’re going to finish it very fast.”
Following the address, Dow futures dropped by 670 points, or 1.4%, in premarket trading. S&P futures fell 1.6%, and those linked to the tech-heavy Nasdaq 100 declined by 2.1%.
By CEO NA Editorial Staff
