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3. Oil Surges as Trump Signals Escalation Against Iran

Oil prices jumped in volatile trading on Thursday morning after Donald Trump warned of potential further military action against Iran, dampening hopes for a near-term de-escalation in the conflict, CNBC reported.

U.S. West Texas Intermediate (WTI) crude futures for May rose 5.9% to $106.02 a barrel as of 3:11 a.m. ET, while June Brent crude futures climbed 6.5% to $107.78 per barrel, according to CNBC.

In a national address on Wednesday, Trump attributed the surge in oil prices to what he described as “Iranian regime” attacks on commercial oil tankers and neighboring countries. He warned that the United States could hit Iran “extremely hard” within the next two to three weeks, while maintaining that discussions with Tehran were still ongoing.

“We are going to finish the job, and we’re going to finish it very fast,” Trump said, signaling both a potential escalation and a limited timeframe for the conflict.

Market analysts say the mixed messaging has heightened uncertainty. George Efstathopoulos, a portfolio manager at Fidelity International, told CNBC that investors had been expecting a “binary outcome,” either a signal of de-escalation or further escalation. “Clearly we seem to be on the latter path right now,” he said, warning that risk-off sentiment could intensify in the coming days.

The developments come as disruption in the Strait of Hormuz continues to weigh heavily on global energy markets. The vital shipping lane, which typically handles a significant share of the world’s oil and gas flows, has seen tanker traffic largely halted since the outbreak of hostilities between the United States, Israel, and Iran.