Oil prices jumped by about $5 in early trading on Thursday after President Donald Trump said the United States would continue its strikes on Iran, including energy and oil targets, over the next few weeks, without committing to a specific timetable for ending the war.
Brent crude futures rose $4.93, or 4.9 percent, to $106.22 a barrel by 0230 GMT. U.S. West Texas Intermediate crude futures climbed $4.20, or 4.2 percent, to $104.33 a barrel.
These gains come after the two benchmark indexes fell by more than a dollar earlier on Thursday ahead of Trump's speech, and had declined at the close of the previous session.
In a televised address to the nation that lasted about 20 minutes, Trump said the U.S. military was nearing completion of its objectives in the Iran war and that the conflict would end soon, but he did not specify a timeline.
He said, We will accomplish the task, and we will accomplish it very quickly. We are very close to that.
Trump added that the war against Iran has caused its military and economic destruction, and that it will continue until all its objectives are achieved, noting that the next two or three weeks will witness very strong strikes against Iran.
He declared that the military operation in Iran had completely destroyed Iran's nuclear project, asserting that Tehran would never acquire nuclear weapons.
Trump indicated that the Strait of Hormuz would open normally once the war ended, painting an optimistic picture of the future as oil prices continued to rise.
The head of the International Energy Agency warned on Wednesday that supply disruptions would begin to affect Europe's economy in April.
