President Donald Trump’s attempt to alleviate concerns regarding the ongoing conflict with Iran unexpectedly led to a surge in global oil prices following a televised address on Wednesday night.

President Trump's Address and Market Reaction

“We’re now totally independent of the Middle East, and yet we are there to help,” Trump stated during his first address to the nation since ordering air strikes on Iran over a month ago. He emphasized the U.S. does not rely on Middle Eastern oil and is present to support allies.

The president also claimed his administration was “nearing completion” of its objectives in the war and predicted that “the gas prices will rapidly come back down” upon its conclusion. However, these assurances coincided with a sharp increase in oil prices.

Oil Price Increases and Stock Market Declines

Brent crude, the global oil benchmark, jumped 3.2 percent to $104.44 per barrel during the speech, while West Texas Intermediate rose 2.2 percent to $102.36 per barrel. These increases continued overnight, reaching $107.78 per barrel for Brent and $106.02 per barrel for WTI by Thursday morning.

The negative market reaction extended beyond oil, with all three major U.S. stock futures indices dropping by more than 1 percent. Similar declines were observed in European and Asian stock markets upon opening Thursday.

Escalation Concerns and Iranian Response

The market volatility stemmed from Trump’s conflicting statements, suggesting the war was nearing an end while simultaneously indicating it would likely intensify. He stated plans to hit Iran “extremely hard,” potentially targeting key electricity plants if a ceasefire isn’t reached.

Iran has warned that attacks on its energy infrastructure would be considered a red line. Following a strike on the South Pars gas field on March 18 by Israel, Iran retaliated with missile and drone strikes against oil and gas facilities in Saudi Arabia, Qatar, Kuwait, and the UAE – all U.S. allies.

The Iranian foreign minister indicated that the retaliatory strikes represented only a “fraction” of its power and warned of “zero restraint” if its infrastructure is targeted again. Iran has also increased its control over the Strait of Hormuz, a crucial oil transit route.

Expert Analysis

CNN host John Berman noted the “inherent contradiction” in Trump’s statements, stating, “There was a bit of inherent contradiction in saying that the objectives are very nearly complete, it’s almost over, but we’re going to attack Iran into the Stone Age over the next few weeks.”

Col. Cedric Leighton, also on CNN, commented, “What that indicates to me is that the markets aren’t really buying what the president is saying,” and predicted “some costs associated with that, in terms of popular support.”