Oil prices jumped sharply Thursday following President Donald Trump’s April 1 speech on Iran, as markets reacted to renewed fears of prolonged conflict and potential supply disruptions.
Brent crude climbed to about $109.50 per barrel, while West Texas Intermediate (WTI) rose to roughly $109.35 — marking a one-day gain of 8% for each. The surge reversed losses from the prior session, when prices had dipped below $100 on expectations of possible de-escalation.
Trump’s remarks — pledging U.S. forces would “finish the job” and signaling that objectives in Iran are nearing completion — quickly shifted sentiment. Traders moved to price in heightened geopolitical risk, particularly concerns surrounding the Strait of Hormuz, a key artery for global oil shipments.
U.S. stock futures fell Thursday morning — with the Dow down 643 points and Nasdaq down 1.93 as of 8:44 a.m. EST — after the president signaled a more aggressive approach toward Iran, dimming hopes for a quick resolution to the Middle East conflict.
“This was a clear geopolitical repricing,” said Phil Flynn, senior market analyst at The PRICE Futures Group. “The market had started to lean toward de-escalation, and the speech snapped that narrative.”
The rally caps a steep climb since late February. Earlier this year, crude traded in the $60 to $70 range. Since the Feb. 28 pre-strike baseline, prices have surged roughly $50 per barrel — an increase of about 70% in just over a month.
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The spike is now hitting consumers directly.
AAA reports the national average for regular gasoline has risen to $4.081 per gallon as of April 2, effectively $4.08 when rounded. That is up from around $3.60 in mid-March, a gain of roughly 40 to 50 cents in a matter of weeks.
The return to $4 gasoline — the highest level since 2022 — comes as the U.S. approaches peak driving season, amplifying the impact on households and businesses.
With tensions unresolved, analysts say energy markets remain highly sensitive to developments tied to Iran. For now, both oil and gas prices are being driven less by fundamentals and more by geopolitics — leaving little margin for volatility to ease in the near term.
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