Oil markets were volatile on Thursday, with prices first falling near $100 a barrel and then rebounding sharply as traders reacted to US President Donald Trump’s address to the nation. Sentiment remained cautious as the speech failed to ease investors’ concerns over the disruption of the Strait of Hormuz, with the US President calling on other countries to help reopen it. In early trading, both major benchmarks fell more than $1 amid anticipation of Trump’s address to the nation. Brent crude futures fell $1.16, or 1.15%, to $100 a barrel by 1204 GMT, while U.S. West Texas Intermediate crude fell $1.41, or 1.41%, to $98.71 a barrel. The downturn widened losses from the previous session, as markets weighed the possibility of a US withdrawal after Trump told Reuters the conflict would end “fairly soon”. However, sentiment changed dramatically after the President delivered his remarks in prime time. Instead of signaling an easing of tensions, Trump urged other countries to step forward and reopen the Strait of Hormuz, a key global oil route that remains closed. So, after the speech, Brent crude rose more than 4% to $106, while West Texas Intermediate rose 3% to $103. Both contracts were in jeopardy before his address began. Speaking from the White House at 9 p.m. EDT, Trump outlined progress in the conflict and reiterated his administration’s objectives, which include dismantling Iran’s missile production and naval capabilities, preventing its proxies from destabilizing the region and ensuring it cannot acquire nuclear weapons. “For those countries that can’t get the fuel, many of which have refused to be complicit in Iran’s collapse, I have a suggestion – No. 1, buy oil from the United States. And No. 2, build up some belated courage, go to the strait, and just take it. Iran is, essentially, destroyed. The hard part is done,” he said. Referring to Operation Epic Fury, Trump said that recent military actions have greatly weakened Iran’s forces. He said Iran’s “capability to launch missiles and drones has been dramatically reduced, and their weapons factories and rocket launchers are being blown to pieces.” He said the country’s “navy is decimated, their air force is in ruins” and its leaders “are now dead”, while the Islamic Revolutionary Guard Corps “is being destroyed as we speak.”“ The address was his first prime-time speech since the attacks on Israel began more than a month ago. In his remarks, Trump said, “Over these past four weeks our armed forces have won swift, decisive, overwhelming victories on the battlefield.”The speech comes as the war in the Middle East enters its second month and Iran’s grip on the Strait of Hormuz tightens, effectively disrupting global oil supplies.
