The Iran war has severely disrupted global oil and gas supplies.
Oil shipments through the critical Strait of Hormuz waterway have mostly halted after Iran threatened to attack tankers that try to cross in retaliation to US-Israeli strikes, which began on 28 February.
In his speech, Trump said the US does not need Middle East’s energy and urged other nations to step in to free up shipments from Gulf that have been disrupted as a result of the war.
He said: “To those countries that can’t get fuel, many of which refuse to get involved in the decapitation of Iran… build up some delayed courage, go to the Strait and just take it.”
Oil prices, which had been fluctuating incrementally before, shot upwards moments after the televised speech.
West Texas Intermediate oil rose 6.4% to about $106.50.
The gains are a “clear market reality check following the earlier optimism for an imminent ceasefire” said Alberto Bellorin from InterCapital Energy.
Trump’s speech lacked a “concrete timeline” for the reopening of the Strait of Hormuz, while a return to normal now looks “months away rather than weeks,” he added.
In urging other nations to step in, Trump has removed hopes that disruptions to global energy supplies will be resolved swiftly, Bellorin said.
Trump has signalled that the war is likely to continue, prompting investors to expect that oil supplies will remain tight, said Tina Soliman-Hunter from Macquarie University.
