Oil prices are rising due to Iran: the market surged following Trump’s remarks
2 April 11:45
Global oil prices surged following a speech by U.S. President Donald Trump, in which he promised to continue strikes against Iran but did not outline a clear plan to end the conflict. Following the speech, Brent rose to approximately $108 per barrel. This was reported by "Komersant Ukrainian", citing Reuters.
U.S. WTI also rose sharply—to over $106 per barrel. Before the speech, futures were trading below $100.
The main reason for the spike was not only the White House’s tough rhetoric but also the lack of signals regarding a swift end to hostilities or the start of negotiations.
Reuters notes that investors had expected at least a hint of de-escalation, but instead heard promises of new “devastating” strikes and general statements that the conflict could end in two to three weeks—without any specific details. It is precisely this uncertainty that intensified the market’s nervous reaction.
Why oil reacts so sensitively to statements regarding Iran
Iran and the Persian Gulf region are critical to the global oil market. Any escalation in the region automatically heightens fears of supply disruptions, especially if risks to maritime transport increase. Reuters directly links the current price spike to concerns that a protracted conflict could hit oil supplies and logistics even harder.
Phillip Nova senior market analyst Priyanka Sachdeva warned that if tensions escalate or risks to shipping increase, prices could rise even further as markets begin to factor new supply disruptions into their pricing. Claudio Galimberti, chief economist at Rystad Energy, expressed a similar view: without a clear path to de-escalation, investors are forced to continue reassessing risks.
How high have prices risen?
According to Reuters, Brent rose by approximately 6.8% to $108 per barrel, and WTI by 6.4% to $106.52. Another agency report put Brent at $107.90.
This is significant because it is not a minor fluctuation but a strong market movement in a single day. AP also reported that following Trump’s speech, Brent rose to $108.15 and U.S. crude to $106.55, confirming the scale of the investor reaction.
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What this means for the world
The sharp rise in oil prices increases risks for global inflation, transportation costs, fuel prices, and economic growth. Reuters reports that alongside the surge in energy prices, investors began selling off risky assets, and stock markets fell. This is a typical scenario when a geopolitical conflict threatens global energy supplies.
The International Energy Agency has already warned that supply disruptions from the Middle East will begin to hit Europe harder as early as April.
Separately, warnings are already being sounded in Europe about the risks of a recession if oil prices rise even further.
What does this mean for Ukraine
For Ukraine, rising oil prices are a negative sign, as the country is heavily dependent on imports of energy resources and petroleum products. If high global prices persist, this could eventually put pressure on fuel costs, logistics, the cost of goods, and overall inflation.
At the same time, high oil prices could bring additional revenue to Russia as a major energy exporter. If prices remain high through the end of the year, Moscow could earn significantly more than it would at lower prices. That is why the oil price surge has not only economic but also a distinct geopolitical impact.
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