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Oil Prices Surge on New Iran War Escalation Fears

Oil prices surged over 7% on Thursday as Brent crude surpassed $108 and WTI reached $107 per barrel, fueled by escalating US-Iran tensions following President Trump's threats and Iran's retaliatory warnings. Global stock markets, including South Korea's Kospi which dropped 4.5%, reacted negatively to the uncertainty. Experts indicate that oil shipments through the critical Strait of Hormuz may take weeks to resume fully after the conflict, due to security and insurance challenges. The conflict persists with missile attacks and alerts of further violence in the Middle East.

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Oil Prices Surge on New Iran War Escalation Fears

Oil prices climbed sharply and global stock markets declined Thursday after US President Donald Trump and Iranian officials exchanged threats, raising concerns about further escalation in the US-Iran conflict.

Oil Prices Jump

  • Brent crude rose 7.4% to over $108 per barrel.
  • WTI increased 7% to $107 per barrel.

Stock Markets React

  • South Korea's Kospi fell 4.5%.
  • European indexes mostly down; US futures pointed lower.
  • Deutsche Bank analysts noted deteriorating sentiment due to lack of clarity from Trump's address.
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Trump's Warnings and Iranian Threats

  • Trump said the US would "hit Iran extremely hard" in 2-3 weeks.
  • Iran threatened "more extensive and destructive actions" in retaliation.
  • Trump also threatened to bomb Iran's power plants and suggested the Strait of Hormuz would open naturally post-conflict.

Expert Insights on Oil Supply

  • Rystad's Claudio Galimberti warned that oil flows through Hormuz could take weeks to recover after hostilities end.
  • Security and insurance issues may delay full resumption.

Middle East Conflict Continues

  • Iran fired missiles at Israel; UAE intercepted a missile.
  • US embassy in Iraq warned of potential attacks in Baghdad.
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