Key Highlights
- Crude oil prices rallied almost 7%, pushing Brent above $107 and WTI approaching $106 per barrel
- President Trump announced plans to strike Iran with increased intensity within the next two to three weeks
- Equity index futures declined over 0.8% following Wednesday evening’s presidential address
- Trump indicated foreign nations should spearhead efforts to reopen the Strait of Hormuz
- Tehran’s Foreign Ministry refuted Trump’s assertion that Iran had requested a truce
Energy markets experienced dramatic volatility on Thursday as crude oil prices soared nearly 7% in response to President Trump’s declaration of planned military escalation against Iran. The surge followed his nationally televised address on Wednesday evening.
Brent crude futures climbed to approximately $107.86 per barrel, rebounding from sub-$100 levels seen earlier. West Texas Intermediate crude advanced to roughly $106.77 per barrel. Both oil benchmarks initially opened lower Thursday morning before dramatically reversing direction.
Equity futures experienced significant selling pressure, declining more than 0.8% after the president’s remarks. Futures contracts for the S&P 500, Dow Jones Industrial Average, and Nasdaq 100 all traded lower as of 10:15 p.m. ET on Wednesday.
BREAKING: Brent crude oil prices officially surge above $110/barrel, now up another +7% tonight. pic.twitter.com/2XM5o66spJ
— The Kobeissi Letter (@KobeissiLetter) April 2, 2026
During his address, Trump outlined aggressive plans to target Iran with enhanced military force over the coming weeks. He characterized the objective as preventing Tehran from acquiring nuclear weapons capabilities.
“We’re going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages where they belong,” Trump declared during his address.
Earlier this week, Trump indicated to media outlets that American forces might withdraw from Iran within two to three weeks, potentially without reaching a formal settlement. While he maintained this timeframe during Wednesday’s speech, he offered no indication that a ceasefire was imminent.
Prior to delivering his address, Trump claimed via social media that Iran’s “new regime president” had requested a ceasefire. Iran’s Foreign Ministry swiftly disputed this claim, with official state media reporting that no such overture had been made.
Strait of Hormuz Concerns
Trump indicated that international partners should assume primary responsibility for restoring operations through the Strait of Hormuz. This narrow 21-mile waterway serves as a vital energy transit point, with approximately 20% of global oil supplies passing through it.
“We will be helpful, but they should take the lead,” Trump stated, emphasizing that other nations “must cherish it” and “must grab it.” He also speculated the strait might “open up naturally.”
The strategic waterway continues to face disruptions with no established timeframe for normalizing oil shipments. Market participants remain anxious about future supply conditions.
Energy Markets and Equity Response
Trump additionally asserted that America is “totally independent of the Middle East” regarding oil requirements. Market analysts have challenged this characterization, noting the interconnected nature of global oil pricing mechanisms.
The Energy Information Administration disclosed that domestic crude stockpiles increased by approximately 5.5 million barrels during the week ending March 27, exceeding market forecasts.
Equity futures sustained downward pressure as market participants assessed the potential impact of extended conflict on worldwide petroleum supplies.
