Global Markets in Turmoil as Oil Prices Surge to $108 per Barrel

World financial markets reeled on Thursday as crude oil prices spiked sharply to $108 per barrel, driven by persistent uncertainty over the ongoing U.S.-Israel military campaign against Iran and the continued closure of the critical Strait of Hormuz.

The surge came despite comments from U.S. President Donald Trump suggesting the conflict could wind down within two to three weeks. Trump indicated that American forces might withdraw soon, stating the “hard part” of the operation had been accomplished and that a formal deal with Tehran was not necessarily required for the war to end. However, he offered no concrete plan for reopening the Strait of Hormuz, a vital chokepoint for roughly 20% of global oil shipments, saying responsibility for securing the waterway would fall to other nations that depend on it.

” We’ll be leaving very soon… maybe two weeks, maybe three,” Trump told reporters. He added that the U.S. would not take the lead in reopening the strait, urging allies to “go get your own oil” if needed.

Oil benchmarks reacted with extreme volatility. Brent crude, the international standard, climbed as high as $108 per barrel amid fears of prolonged supply disruptions, while West Texas Intermediate (WTI) also pushed higher before paring some gains. Analysts warned that sustained closure of the strait could keep energy prices elevated and fuel broader inflationary pressures worldwide.

On the diplomatic and military front, Iran firmly rejected any ongoing direct or indirect negotiations, declaring that talks were not taking place. Tehran continued missile strikes targeting Israel and other regional sites, while Israeli forces claimed to have eliminated a senior Hezbollah commander and an Iranian Islamic Revolutionary Guard Corps (IRGC) commander in recent operations.

Reports indicated intensified U.S. and Israeli airstrikes on northern Iran, focusing on infrastructure and key facilities. Iranian officials described the attacks as aggressive, with damage reported to strategic sites.

The escalating tensions have placed significant strain on the global economy, with energy costs rising rapidly and raising concerns about potential stagflation risks. Stock markets saw sharp sell-offs in early trading as investors weighed the balance between Trump’s timeline for de-escalation and the immediate realities of disrupted oil flows.

Market watchers remain cautious, noting that while Trump’s remarks introduced some optimism for a quicker resolution, the lack of progress on reopening the Strait of Hormuz and continued Iranian defiance have kept upward pressure on commodity prices.