Oil prices rose sharply in a volatile trading session after US President Donald Trump warned he would continue military actions against Iran in the next two to three weeks, reducing expectations of a short-term cooldown.
US West Texas Intermediate (WTI) crude oil for May delivery rose 5.9% to $106.02 a barrel at 3:11 AM ET. Meanwhile, Brent crude oil for June delivery, the international benchmark, rose 6.5% to $107.78 a barrel.
In his speech, Mr. Trump said that the increase in oil prices is due to "the Iranian regime carrying out terrorist attacks targeting commercial oil tankers and neighboring countries unrelated to the conflict".
He said the US will "attack Iran very strongly" in the next two to three weeks, while emphasizing that the war will not last and discussions with Tehran "are still ongoing".
The flow of ships through the Strait of Hormuz, a route that once transported about 1/5 of global oil and gas, has been almost stalled since the US-Israel war with Iran broke out on February 28, pushing energy prices to skyrocket in one of the world's most serious energy crises.
Brent oil prices at one point fell below $100/barrel for the first time in a week after Mr. Trump said on Tuesday evening that the US expects to soon end military operations against Iran within "two or three weeks", and seemed to declare victory even before reaching an official agreement with Iran. "We will withdraw very soon," he said.
