Global oil prices surged on Wednesday following an address by US President Donald Trump on the ongoing conflict involving Iran.
According to a report by The Guardian, crude prices spiked immediately after the president’s 20-minute speech, as investors reacted to heightened uncertainty surrounding the situation.
Trump’s remarks failed to calm fears over a possible closure of the Strait of Hormuz, a critical global oil transit route. The US leader insisted that America has minimal reliance on the passage and urged countries more dependent on it to take responsibility for ensuring its reopening.
He further stated that the United States does not need resources from the Middle East, including oil.
Following the address, Brent crude rose by more than 4 percent to $105.55 per barrel, while West Texas Intermediate climbed 3 percent to $103.16. The two benchmarks had recorded declines earlier before the speech.
Meanwhile, Asian markets reacted negatively in early trading. Japan’s Nikkei index dropped by 0.79 percent, while South Korea’s Kospi fell by 1.8 percent. Hong Kong’s Hang Seng index slipped by 0.5 percent, and China’s CSI 300 declined by 0.3 percent. Australia’s S&P/ASX 200 also recorded a 0.5 percent loss.
Elsewhere, US stock futures dipped by 0.67 percent, with European futures also edging lower by 0.1 percent, reflecting broader investor concerns over the escalating geopolitical tensions.
