Gotrade News - Global oil prices surged after President Donald Trump threatened renewed strikes on Iran, sending Brent crude up $3.86, or 5.2%, to $78.02 a barrel, its highest close since June 19. West Texas Intermediate climbed $3.08, or 4.4%, to $73.52 a barrel, the strongest level since June 22. According to Kompas, prices spiked nearly 9% intraday before easing after Trump said he does not intend to start a full-scale war.
Key Takeaways
- Brent gained 5.2% to $78.02 and WTI rose 4.4% to $73.52, both multi-week highs.
- Trump said the ceasefire with Iran has ended and signaled possible new strikes.
- Roughly one-fifth of global oil supply transits the Strait of Hormuz.
- US energy names stand to benefit from the higher crude backdrop.
Strait of Hormuz Supply Risk Returns
The rally was driven by fears of a fresh disruption to Middle East crude flows. Per Kompas, Trump declared the ceasefire agreement with Iran over and signaled possible new strikes after Iran attacked US military bases and tankers in the Strait of Hormuz. About one-fifth of the world's oil supply passes through the chokepoint, so any threat to safe passage tends to move prices sharply.
Centcom Confirms Second Night of Strikes
The escalation deepened as military action resumed. As reported by Bloomberg Technoz, US Central Command confirmed a second night of attacks on Iran, and Trump stated the temporary ceasefire had ended. Brent rose nearly 7% and briefly topped $80 a barrel on Wednesday while WTI strengthened 6%, pushing both benchmarks to their highest levels in two weeks. Beritasatu corroborated an intraday surge of around 8% on Trump's renewed threat.
