(RTTNews) – Crude oil rose on Thursday, recovering from yesterday’s decline, as concerns over supply disruptions due to a prolonged war in the Gulf increased after US President Donald Trump’s address to the nation yesterday.
WTI crude oil for delivery in May was last seen trading $11.94 (or 11.93%) higher at $112.06 per barrel.
Yesterday, Trump addressed the nation to give a briefing on the current status of the US-Israel-led war against Iran as it nears its sixth week.
Trump’s first formal address on the conflict lasted about 19 minutes, broadcast from the White House, and was watched anxiously around the world for information on when the war would end.
Trump emphasized that the main strategic objectives of launching the attacks were about to be met.
Trump estimates that the war will last for the next two to three weeks and during this time Iran will be hit heavily by US forces. Although Trump confirmed that the US would complete the work very quickly, he did not provide any other details.
Taking pride in the fact that the operations have deprived Iran of its navy, army and air force and made them unable to develop nuclear weapons, Trump claimed that the operation would ultimately push Iran back into the “Stone Age”.
A day earlier, Trump had stressed that the war would probably end in three weeks, whether there is a deal with Iran or not.
Iran rejected Trump’s threats and continued attacking Israel and Bahrain. Saudi Arabia also reported intercepting Iranian missiles.
Iran had earlier attacked a QatarEnergy oil tanker and attacked Kuwait’s airport.
The US Embassy in Baghdad, Iraq, apparently for security reasons, alerted all US citizens to leave Iraq.
For their part, American-Israeli forces attacked the Pasteur Institute (established in 1920), a major health research institute in Iran.
Israel also continued its attack on the southern suburbs in Beirut, Lebanon.
Hours before Trump’s speech, Iranian President Massoud Pezeshkian wrote a letter to the American public asking them to question America’s reasoning behind starting this war.
The Strait of Hormuz, the main sea route for oil transportation from Arab countries to the rest of the world, has been seriously disrupted since the conflict began.
Initially, Trump’s mission wanted to wrest control of the Strait from Iran, but of late, reversing his stance, Trump urged countries that buy oil from the Middle East to take this responsibility. Trump took the names of South Korea, Japan or China to bear the burden.
Decoding Trump’s message, experts expressed concern over the consequences of the war lasting a few more weeks.
Financial markets plunged, while oil prices skyrocketed and the US dollar soared.
The US Dollar Index today was last seen trading at 100.02, up 0.46 points (or 0.46%).
Note, Thursday is the last trading day of this trading week as the markets are closed on Friday due to the Good Friday holiday.
Energy experts are also concerned that a prolonged war could result in “demand destruction”, a situation where higher prices due to restricted supply rapidly reduce demand, which could pose a new challenge to markets.
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