- Oil prices surged after President Trump's speech, with Brent crude above $105 a barrel
- US West Texas Intermediate crude topped $103 following initial price declines
- Trump claimed the US does not need oil from the Strait of Hormuz and can be independent
Oil prices climbed sharply after US President Donald Trump's address on Thursday. Brent crude rose above $105 a barrel. US West Texas Intermediate topped $103. Ironically, prices had been falling before his address.
Traders were waiting for the speech in hopes it might signal a move toward peace in the conflict with Iran. Early on Thursday, oil fell more than $1 as markets hoped the US might pull back from the war. FOLLOW LIVE UPDATES
However, in his speech, Trump said the United States does not need oil from the Strait of Hormuz route. He said the US gets almost no oil through that route and can be energy independent.
The Strait of Hormuz is one of the world's most important oil passages. Normally, about a fifth of global crude moves through it. Its effective closure has tightened supply and pushed prices higher.
Trump told other countries that rely on oil from the strait to protect it themselves. He also suggested allies should buy more oil from the United States or take steps to secure their supplies.
His comments did not reassure traders. Many had hoped the speech would bring clarity about a ceasefire or steps to reopen Hormuz. Instead, markets saw continued risk to supply, keeping prices elevated.
The rise in oil prices affects costs across many sectors. Higher crude typically leads to higher fuel prices and can increase costs for goods and transport worldwide.
Iran War: No Immediate End In Sight?
Markets were hoping Trump to announce an end-date for the ongoing Iran war. However, in his speech, Trump didn't mention any such timeline. Earlier, he has told media that he would like to wrap up the Iran war within two-three weeks.
On the contrary, Trump's speech spooked markets as he spoke about hitting Iran's energy infrastructure. In his address on Thursday, Trump said, "If there is no deal, we are going to hit each and every one of their electric generating plants very hard, and there's not a thing they could do about it."
