Oil prices surged after Trump’s speech sent shockwaves through global markets, as investors reacted to rising geopolitical tensions and supply disruptions.
Brent crude jumped more than 4% to reach $105.55, while West Texas Intermediate (WTI) climbed 3% to $103.16. Both benchmarks had been declining earlier before the US president’s address.
The surge comes amid fears over the potential closure of the Strait of Hormuz, a key global oil transit route. The waterway carries a significant share of the world’s oil and liquefied natural gas, making it critical for global energy supply.
Investors are closely watching when and how the route may reopen, as disruptions have already affected Asian economies. In his speech, Donald Trump warned that the United States could strike Iran “extremely hard” within weeks, escalating concerns among investors.
PRESIDENT TRUMP: We’ve decimated Iran both militarily and economically. The countries who receive oil through the Strait of Hormuz must now take care of that passage.
We will be helpful, but they should take the lead in protecting the oil they so desperately depend on. pic.twitter.com/2OmKAJL8Eg
— Department of State (@StateDept) April 2, 2026Following the remarks, US stock futures fell by 0.67%, while European futures also edged lower. Although hopes of ending the month-long conflict had previously boosted global stocks, the latest developments reversed some of those gains.
Asia-Pacific markets declined, with MSCI’s regional index dropping 0.75% and Japan’s Nikkei falling 0.79% during volatile trading. Rising oil prices over the past few weeks have fueled fears of global inflation and slower economic growth.
Read: Pakistan Inflation Outlook for April 2026 Rises on Oil Risk
The US dollar strengthened after the speech, as investors turned to it as a safe-haven currency during uncertainty. Tensions remain high as Iran continues to engage with Gulf countries, some of which host US bases.
The situation has added pressure to global energy markets, with the Strait of Hormuz serving as a strategic leverage point. As markets remain volatile, analysts are closely monitoring geopolitical developments and their potential impact on oil supply.
