Oil prices surge after Trump says attacks on Iran will continue

Oil prices are surging today. They are reacting to remarks by US President Donald Trump that the United States will continue attacking Iran. Trump also gave no specific timetable for ending the war, raising investor concerns about prolonged disruption to oil supplies. The commodity continued to rise during the day, with US light crude WTI breaking above $110 a barrel.

At around 18:30 CEST, the price of North Sea Brent crude was up 6.6 percent at $107.81 a barrel. At the same time, a barrel of US light crude WTI was up 11.65 percent at $111.78.

Brent and WTI prices fell on Wednesday. Before Trump's televised address to the nation, both contracts were still down by around a dollar.

"I am pleased to say that our core strategic objectives are nearing completion...We will finish the job, and we will finish it very fast," Trump said in the widely anticipated address, broadcast during prime time on US television (Wednesday at 21:00 Washington time).

According to the president, the US military has nearly achieved its objectives and the war will end in two to three weeks. Trump did not provide any details, however.

According to Priyanka Sachdeva, an analyst at Phillip Nova, markets are reacting to the fact that the speech made no clear mention of a ceasefire or diplomatic engagement. "If tensions intensify or maritime risks increase, oil could test new highs as markets price in potential supply disruptions," Sachdeva said.

"The question traders are thinking about is whether Iran's oil infrastructure could now be at risk. With further damage in the area highly likely, it seems the restoration of oil supplies in the region will be delayed even further," said investor Dennis Kissler of BOK Financial.

Oil prices in dollars per barrel (about 159 litres)