Global oil prices surged sharply after US President Donald Trump’s latest address, with Brent crude rising nearly 5% to cross the $106 per barrel mark, as markets reacted to the lack of clarity on the reopening of the Strait of Hormuz.
The benchmark Brent contract climbed to around $106.16 per barrel, reflecting investor anxiety over prolonged supply disruptions from one of the world’s most critical oil transit routes.
No Clarity on Hormuz Spooks Markets
Market participants were closely watching Trump’s speech for signals on when the Strait of Hormuz, a key global energy corridor, might reopen. However, the absence of any clear timeline triggered a sharp upward move in crude prices.
The strategic passage, linking the Persian Gulf to the Arabian Sea, accounts for roughly 25% of global oil shipments. For India, the dependence is even higher, with nearly 80% of its energy imports routed through Hormuz.
With Iran effectively choking shipping through the strait amid the ongoing conflict, hundreds of vessels, including oil tankers and cargo ships, remain stranded, severely disrupting global supply chains.
ALSO READ | ‘We Don’t Need Oil From Hormuz’: Trump Urges Oil-Dependent Nations To Protect Key Shipping Route
Trump Says US ‘Doesn’t Need’ Hormuz Oil
In his address, Trump downplayed US dependence on the route, stating that America imports “almost no oil” via the Strait of Hormuz and would not rely on it in the future.
“We don’t need it. We haven’t needed it, and we don’t need it,” he said, urging countries dependent on Hormuz to “take care of that passage” themselves.
Trump also suggested that such nations should take the lead in securing oil supplies, while the US would offer support. He added that countries unwilling to get involved in actions against Iran should now step up to protect their energy interests.
Pressure Builds Ahead of Long Weekend
The spike in oil prices could weigh heavily on equity markets, especially ahead of a long trading weekend, with investors bracing for volatility linked to geopolitical uncertainty.
The sharp rise in crude is expected to impact inflation outlooks and fuel costs globally, adding another layer of concern for economies already navigating fragile recovery conditions.
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