May futures for Brent crude surged nearly 5% to almost 106 US dollars per barrel, while WTI crude climbed over 4%, surpassing 104 US dollars per barrel. This occurred as President Donald Trump addressed the nation on the conflict in Iran.

During his speech, Trump threatened further airstrikes against Iran, warning the US would "send Iran back to the Stone Age" within 2-3 weeks. "We will strike extremely hard," he declared, though he noted negotiations were ongoing.

Brent crude prices (US dollars/barrel) from 17/3 to present. Source: OilPrice

Brent crude prices (US dollars/barrel) from 17/3 to present. Source: OilPrice

Brent crude prices had previously fallen sharply since 31/3, dropping from over 119 US dollars per barrel to below 100 US dollars for the first time on 1/4. This decline followed President Trump's indication that US forces would gradually reduce attacks, which had initially raised hopes for de-escalation.

Global markets also reacted to President Trump's prime-time address. US stock futures fell 0,67%, and European futures dropped 0,1%. In Asia's morning trading on 2/4, Japan's Nikkei reversed course to decline 0,79%, with MSCI also falling 0,75%.

The US dollar emerged as a safe haven for investors amid the turmoil, strengthening against most other currencies after the speech. Conversely, the euro weakened 0,25% to 1,156 US dollars per one euro.

Analysts and investors, according to Reuters, are now focused on the reopening of the Strait of Hormuz to ease the fuel supply bottleneck severely impacting Asian economies.

Trump emphasized that nations receiving oil through this maritime route must take control of the Strait of Hormuz themselves. "They have to cherish, take, and protect that route. They can do it easily," he stated, assuring US support for such efforts.

In response, Iran launched missiles at Israel after Trump's speech.

Phien An (according to CNBC, Reuters)