Oil Prices Surge After Trump Orders Iran Strikes

NEW YORK: (News Desk) –  Global oil markets extended their gains on Thursday after US President Donald Trump announced the end of the ceasefire arrangement with Iran and ordered new strikes following attacks on vessels in the Strait of Hormuz.

Crude prices surged as investors reacted to rising tensions between Washington and Tehran, although equity markets showed signs of resilience, with technology stocks attracting some bargain buying. Asian markets, including Tokyo and Seoul, opened higher despite concerns over the latest geopolitical developments.

Oil prices jumped sharply on Wednesday after Trump said the fragile truce between the United States and Iran had collapsed. Washington also withdrew a temporary sanctions waiver that had allowed Iranian oil exports to continue.

Both major crude benchmarks climbed nearly eight percent, with Brent crude briefly crossing $80 per barrel for the first time in two weeks. The rise renewed concerns over inflationary pressures and the possible impact on global economic growth.

Trump said the US strikes were carried out in response to attacks on ships in the Strait of Hormuz, a key global energy route through which around one-fifth of the world’s oil supply typically passes. He warned that Iran would face more severe consequences if further attacks occurred.

“This is in response to yesterday’s bombing of ships by Iran,” Trump said in a statement shared on social media.

Despite the aggressive warnings, Trump later indicated that he expected the latest escalation to be resolved quickly and suggested that diplomatic discussions could continue. He also claimed that Iranian officials had contacted him seeking a new agreement, though he did not provide details about the alleged communication.

Market analysts said Trump’s statements increased fears that tensions could escalate further and that previous efforts toward negotiations could collapse.

Neil Wilson of Saxo Markets said the remarks highlighted concerns about a possible return to a more hostile environment, although he noted that a complete breakdown in talks was not considered the most likely outcome because both sides had incentives to avoid a prolonged confrontation.

Stock markets remained mixed as investors weighed geopolitical risks against recent weakness in technology shares. Asian markets mostly moved higher, with Seoul’s benchmark index gaining nearly two percent and Tokyo’s Nikkei rising around two percent.

Hong Kong continued its recent recovery, supported by gains in Chinese technology companies, while Shanghai, Singapore, Wellington, and Taipei also recorded increases.

Investors were also watching South Korean semiconductor company SK hynix ahead of its planned US market debut. The company’s American Depositary Receipt offering was reportedly heavily oversubscribed, with expectations that the listing could raise billions of dollars.

SK hynix shares in Seoul rose nearly seven percent on Thursday, although the stock remains well below its recent peak after suffering losses during the broader technology sector sell-off.

Market Snapshot (Around 0230 GMT)

• West Texas Intermediate crude: up 1.4% at $74.52 per barrel
• Brent crude: up 1.3% at $79.00 per barrel
• Seoul Kospi: up 2.2%
• Tokyo Nikkei 225: up 2.0%
• Hong Kong Hang Seng: up 0.5%
• Shanghai Composite: up 0.1%
• Dow Jones Industrial Average: down 1.1% at close
• London FTSE 100: down 1.7% at close