On Thursday, April 2, the oil market saw a sharp rise in prices—by more than $5—following a statement by U.S. President Donald Trump regarding the possibility of renewed attacks on Iran. This sparked concerns about potential disruptions to oil supplies, according to Glavkom, citing Reuters.
Changes in the oil market
Brent crude futures rose by $6.33, or 6.3%, to $107.49 per barrel, while West Texas Intermediate rose by $5.28, or 5.3%, to $105.40 per barrel. This occurred after both grades had fallen by more than $1 ahead of Trump’s televised address.
Market reaction
In his speech, Trump noted that the U.S. is close to ending the conflict and achieving its military objectives, but did not provide specific details. Priyanka Sachdeva, senior market analyst at Phillip Nova, emphasized that the lack of mention of a ceasefire caused concern in the markets.
“If tensions continue to rise, oil prices could reach new highs due to potential supply disruptions,” Sachdeva noted.
Trump’s Future Plans
Donald Trump stated that the U.S. is prepared to escalate its military response over the next two to three weeks, which could lead to significant changes in the oil market. The Trump administration is studying the potential impact of prices rising to $200 per barrel on the economy.
