Global oil prices climbed sharply above $106 per barrel after Donald Trump warned of intensified military action against Iran, heightening fears of prolonged disruption to global energy supplies.
Brent crude rose by about five per cent following Trump’s address from the White House, as investors reacted to growing uncertainty surrounding the crisis.
Concerns have centred on the Strait of Hormuz, a vital channel through which roughly one-fifth of the world’s oil supply passes.
The waterway has effectively been blocked by Iran, sending shockwaves through energy markets and pushing prices significantly higher than pre-conflict levels.
In his remarks, Trump signalled that US military operations could intensify in the coming weeks, warning that Iran would be hit “extremely hard.”
While suggesting the conflict could end soon, he also issued fresh threats, adding to market uncertainty.
He called on US allies to take greater responsibility for securing the Strait of Hormuz, arguing that countries dependent on the route should play a leading role in reopening it.
Despite claiming that Iran’s military capabilities had been significantly weakened, Trump again urged Tehran to reach an agreement with Washington, without outlining specific terms.
Iran, however, rejected suggestions that it was seeking a ceasefire, dismissing the claims as false and further deepening tensions between both sides.
Financial markets reacted negatively, particularly across Asia where many economies rely heavily on Middle Eastern oil imports.
