Oil prices climbed more than $4 on Thursday after President Donald Trump said the United States would continue to attack Iran, including energy and oil targets over the next few weeks, and did not commit to a specific timeline to end the war.
Brent crude futures rose $4.88, or 4.8%, to $106.04 per barrel by 0200 GMT. U.S. West Texas Intermediate crude futures were up $4.17, or 4.2%, to $104.29 per barrel.
The gains come after both benchmarks had fallen more than $1 earlier on Thursday ahead of Trump’s speech and had settled lower in the previous session.
Trump said in a televised speech to the nation that the U.S. military had nearly completed its goals in its war with Iran, and that the conflict would soon be ending, but gave no specific timeline.
“We are going to finish the job, and we’re going to finish it very fast. We’re getting very close,” he said.
Threats to maritime traffic have grown as the conflict intensifies across the region. Most recently on Wednesday, an oil tanker leased to QatarEnergy was hit by an Iranian cruise missile in Qatari waters, its defence ministry said.
The head of the International Energy Agency cautioned on Wednesday that supply disruptions will start to impact Europe’s economy in April. The continent had previously been shielded by cargoes contracted before the war started.
(Reporting by Colleen Howe and Sudarshan Varadhan; Editing by Himani Sarkar and Edwina Gibbs)