Global oil prices reversed losses early Thursday after US President Donald Trump said the US would attack Iran “extremely hard” in the next two to three weeks.
In a prime-time televised address early Thursday (India time), Trump added that the US will “finish the job very soon” in Iran. Oil futures initially traded lower on hopes of a ceasefire or a possible end to the war. But after Trump’s remarks, prices rose sharply.
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At 7:54 a.m., Brent for May was trading at $106.28 a barrel on the Intercontinental Exchange, up 5.12% from its previous close. The May West Texas Intermediate (WTI) contract on the NYMEX rose 4.27% to $104.40 a barrel.
Trump also said the strategic goals in the Iran war were “nearing completion.” “America is winning and winning more than ever before,” he said.
War rhetoric
US Secretary of State Marco Rubio wrote in an interview with X: “President Trump gave a powerful speech tonight. He was clear about our goals in Iran.” He outlined the objectives as — “destroy their arms factories”, “destroy their navy”, “destroy their air force”, “destroy their chances of ever having a nuclear weapon”.
The prospect of the war continuing for another three weeks has increased volatility in oil markets. Around 20% of global energy supplies usually pass through the Strait of Hormuz, which is now largely disrupted.
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Additionally, damage reported at refineries, liquefied natural gas plants and oil and gas fields could take months — if not years — to be repaired and restored to pre-war capacity, experts said.
Impact of India
This has significantly affected India, which imports nearly 90% of its oil needs. West Asia traditionally accounts for about 40% of India’s oil imports.
However, the government has assured that sufficient oil reserves are available and that supplies for the coming months are tied up.
Meanwhile, oil companies raised prices of aviation turbine fuel (ATF) — one of the key oil derivatives — by about 8.5% on Wednesday. Aviation fuel is now sitting in the state capital ₹1,04,927 per kilolitre, compared to Rs ₹96,638 in March.
LPG tip
Commercial LPG prices have also increased by approx ₹200 with effect from Wednesday, marking the second hike in a month.
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In Delhi, a 19kg LPG bottle now costs ₹2,078.50, more ₹195.5 since last revised on March 7. About 65% of India’s total LPG requirement is imported and roughly 90% of these imports used to pass through the Strait of Hormuz, which is now largely cut off.
LPG is also a by-product of oil refining. To mitigate supply risks, India has increased its daily domestic production of LPG by around 40% since the start of the war, in an effort to ensure adequate availability.
