Why is Oil Skyrocketing? Trump’s ‘Stone Age’ Warning to Iran Sends Brent Past $107

Global oil benchmarks rallied on Thursday after U.S. President Donald Trump delivered a national address, in which he vowed to intensify military strikes against Iran. Brent crude surged over 6% to top $107.49 per barrel, reversing a brief cooling period as markets reacted to Trump’s warning that the U.S. would hit Iranian energy targets over the coming weeks to “finish the job.”

Trump’s Warning Rattles Markets

The sudden spike in energy prices followed a live address from the White House late Wednesday, U.S. time, where Trump signaled that the month-long conflict with Iran is entering a "decisive and aggressive" phase. "We are going to hit them extremely hard over the next two to three weeks," Trump said, adding that the military campaign aimed to bring Iran "back to the Stone Ages" if it continued to block the Strait of Hormuz.

The remarks crushed hopes for an imminent ceasefire, which had caused prices to dip toward $98 earlier in the week. By 9:37 AM IST on Thursday, Brent crude futures rose $6.33, or 6.3%, to $107.49 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 5.3% to hit $105.40. 

Lack of a clear exit strategy in Trump’s speech has left the market pricing in a prolonged disruption to global supply chains. The early-morning rally in energy markets showed signs of sustained momentum as Brent crude futures held firm at $106.10 per barrel by 10:30 AM IST, thus a net gain of nearly 5% for the session. In the U.S. markets, West Texas Intermediate (WTI) was trading at $104.05, up 4% from the previous close. While the initial 7% jump seen in pre-market electronic trading has slightly cooled, the indices remain in a technical breakout zone. 

Strait of Hormuz and Supply Fears

Compounding the price surge are fresh reports of maritime hostilities. On Wednesday, a tanker leased by QatarEnergy was reportedly struck by an Iranian cruise missile in Qatari waters, further stoking fears that the Strait of Hormuz. Iran has reiterated its stance that the waterway will remain closed, rejecting Trump’s claims that Tehran had sought a ceasefire.

The International Energy Agency (IEA) has warned that supply disruptions, which existing contracts had previously buffered, are expected to hit the European and Asian economies significantly in April. With crude now holding firmly above the $100 mark, global airlines and logistics firms have already begun announcing fuel surcharges for the June-July period. On Dalal Street, the Sensex and Nifty opened lower on Thursday, as the oil shock threatens to derail the inflation recovery seen in the first quarter of 2026.

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