- Oil prices rebounded sharply after Trump warned of intensified military action against Iran
- Brent crude rose over 5% above $105 per barrel, WTI climbed 3.2% to $103.27 per barrel
- Strait of Hormuz remains largely closed, continuing to restrict global oil and gas flows
Oil prices rebounded sharply on Thursday, erasing early losses after US President Donald Trump warned of intensified military action against Iran in the coming weeks.
Brent crude rose more than 5% to trade above $105 per barrel, while US West Texas Intermediate crude climbed as much as 3.2% to $103.27 per barrel. The rebound came after both benchmarks had declined earlier in the session. Brent had fallen 1.4% to around $99.70 per barrel after dropping as much as 1.8% intraday, while WTI had slipped as much as 2.4% to $97.70.
“We are systematically dismantling the regime's ability to threaten America or project power outside of their borders,” Trump said. He added that the United States would escalate strikes if Iran does not agree to terms.
“Will hit Iran extremely hard over next two to three weeks,” Trump said, adding that Washington could target Iran's electric plants if no deal is reached. “My choice was diplomacy, Iran rejected every attempt,” he said.
On April 1, Trump signalled that US involvement in the conflict could end within two to three weeks, prompting expectations of a potential easing in geopolitical tensions. Traders are now watching for clarity on timelines and whether the United States will take steps to reopen the Strait of Hormuz.
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Strait Disruption Continues
Despite the pullback in prices, the Strait of Hormuz remains largely shut, continuing to restrict flows of crude, gas and refined products.
The chokepoint accounts for a significant share of global oil trade, and the disruption has been the main driver of the recent surge in prices.
Brent crude is still trading nearly 40% higher than levels seen before the conflict began.
Volatility After Record Surge
Oil markets have seen sharp swings over recent sessions. Brent crude surged about 63% in March, marking its largest monthly increase on record, before retreating as traders reassessed supply risks and policy signals.
Even with the recent decline, prices remain elevated due to ongoing supply concerns.
Supply Shock Concerns
The International Energy Agency has warned that the supply disruption could intensify in April.
IEA Executive Director Fatih Birol said supply losses next month could be twice as severe as in March, when shipments were supported by cargoes that had already cleared the Strait of Hormuz before the escalation.
He estimated current disruptions at around 12 million barrels per day, exceeding previous oil crises.
Market Watch
Energy markets remain focused on developments around the Strait of Hormuz and signals from Washington.
While expectations of a de-escalation have pushed prices lower, traders continue to factor in the risk that supply constraints could persist even if the conflict ends, given damage to infrastructure and delays in restoring normal shipping flows.
Catch all the live updates on US President Donald Trump's speech here.
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