U.S. crude oil prices soared more than 10% to top $110 per barrel on Thursday following a televised address by President Donald Trump renewing threats against Iran and extending the timeline for the ongoing conflict.

A protracted conflict in a critical oil-producing region has sharply increased energy costs, fueling significant global market volatility. This escalation threatens global supply chains, stokes inflationary pressures, and complicates central bank policy in a fragile economic environment. Businesses face sustained high energy costs and potential disruptions to logistics and raw material availability, directly impacting operational stability and growth forecasts.

What We Know So Far

  • U.S. West Texas Intermediate (WTI) crude oil prices rose by 11% to $111.60 a barrel, crossing the $110 threshold for the first time since March 9, as reported by The Guardian.
  • Brent crude, the international benchmark, jumped by as much as 8% to $109.74 a barrel, according to the same reports, after briefly soaring beyond the $111 mark.
  • The price surge followed a televised speech where President Trump vowed to hit Iran "extremely hard" over the coming weeks but did not outline a plan to reopen the vital Strait of Hormuz, according to The Times of India.
  • The spot price for Brent crude for immediate physical delivery surged to $141.36, its highest level since the 2008 financial crisis, before easing later in the day.
  • The ongoing U.S.-Israeli war on Iran, now nearing the end of its fifth week, has already removed millions of barrels of oil per day from the global supply, intensifying concerns over a significant supply deficit.

Understanding Current Oil Price Volatility

The primary driver of Thursday's market reaction was the lack of a clear de-escalation strategy in President Trump's national address. Investors had anticipated guidance on how the conflict might conclude and how critical shipping lanes could be secured. Instead, the speech signaled a continuation of hostilities, forcing markets to price in the effects of long-term delays to oil supply deliveries from the Gulf. According to a report from CNBC, the oil market is now facing the potential loss of more than 600 million barrels of oil and refined products if the conflict extends through April.