Oil Prices Surge After Trump Signals Possible Military Strike on Iran

Global oil markets reacted sharply to statements attributed to former President Donald Trump, who reportedly said a U.S. military strike on Iran is still under consideration. The comment, made during a private event in Florida, came after the latest round of nuclear talks between Iran and international negotiators ended without a breakthrough. The absence of a deal reignited fears of escalating conflict in the Middle East, directly impacting energy markets. Brent crude futures rose to $98.42 per barrel, a gain of $4.71, while West Texas Intermediate (WTI) climbed to $94.35, up $4.18. Both benchmarks registered their largest single-day gains in over a year. The surge reflects investor anxiety over the potential closure of the Strait of Hormuz, a critical maritime chokepoint through which approximately 20% of global oil shipments pass. The market's response underscores the sensitivity of oil prices to Middle Eastern instability. Energy traders are now factoring in a higher probability of supply-side disruptions, with insurance premiums for tankers traversing the region rising by 17% over the past week. Major oil producers including Saudi Arabia and the United Arab Emirates have signaled readiness to increase output if needed, but geopolitical uncertainty continues to overshadow such assurances. Investors across equities and fixed income also adjusted positions amid the volatility. The S&P 500 dipped 0.6%, while U.S. 10-year Treasury yields rose to 4.23%, reflecting a flight to safety. The developments are expected to influence Federal Reserve policy considerations in the coming weeks, particularly regarding inflationary risks from energy supply shocks.