Oil markets turned volatile on Thursday, with prices first plunging near the $100 per barrel mark and then rebounding sharply as traders reacted to US President Donald Trump’s address to the nation. Sentiments remained cautious as the speech failed to ease investor concerns over the disruption of the Strait of Hormuz, with the US president calling on other nations to help reopen it. In early trade, both major benchmarks dropped by more than $1 amid anticipation of Trump’s address to the nation. Brent crude futures fell $1.16, or 1.15%, to $100 per barrel by 1204 GMT, while US West Texas Intermediate crude declined $1.41, or 1.41%, to $98.71 per barrel. The downturn extended losses from the previous session, as markets weighed the possibility of a US pullback after Trump told Reuters the conflict would end “fairly soon”. However, sentiment shifted dramatically once the president delivered his prime-time remarks. Instead of signalling de-escalation, Trump urged other nations to step in and reopen the Strait of Hormuz, a key global oil route that remains shut. Hence, following the speech, Brent crude climbed more than 4% to touch $106, while West Texas Intermediate rose 3% to $103. Both contracts had been in the red before his address began. Speaking at 9 pm EDT from the White House, Trump outlined progress in the conflict and reiterated his administration’s objectives, including dismantling Iran’s missile production and naval capabilities, preventing its proxies from destabilising the region, and ensuring it does not acquire a nuclear weapon. “To those countries that can’t get fuel, many of which refused to get involved in the decapitation of Iran, I have a suggestion—Number 1, buy oil from the United States. And Number 2, build up some delayed courage, go to the Strait, and just take it. Iran has been, essentially, decimated. The hard part is done,” he said. Referring to Operation Epic Fury, Trump said recent military actions had significantly weakened Iran’s forces. He stated that Iran’s “ability to launch missiles and drones is dramatically curtailed, and their weapons factories and rocket launchers are being blown to pieces.” He added that the country’s “navy is gone, their air force is in ruins,” and that its leaders “are now dead,” while the Islamic Revolutionary Guard Corps “is being decimated as we speak.” The address marked his first prime-time speech since strikes were launched alongside Israel more than a month ago. In his remarks, Trump said, “In these past four weeks our armed forces have delivered swift, decisive, overwhelming victories on the battlefield.”The speech came at a time when the ongoing war in the Middle East has entered its second month and Iran’s chokehold over the Straif of Hormuz has tightened, effectively disrupting global oil supplies.
