Energy stocks rally after Trump warns of intensified Iran strikes
Investing.com — Shares in energy companies climbed on Thursday as oil and gas prices surged after President Donald Trump signaled the U.S. would press ahead with military strikes on Iran, raising fears of extended disruptions to global oil supply.
Shares in Chevron and Exxon Mobil rose 3% and 3.4%, respectively, with ConocoPhillips also climbing 3.1% in premarket trading by 07:25 ET. The broader XLE ETF (NYSE:XLE) added 2.9%.
Brent crude futures were up nearly 8% to $109.12 per barrel, while U.S. West Texas Intermediate futures rose 8.7% to $108.84. Both benchmarks had opened modestly lower after retreating in the previous session.
In a televised address, Trump said the U.S. military would intensify its campaign against Iran over the coming weeks, framing it around preventing Tehran from acquiring a nuclear weapon. “We’re going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages where they belong,” he said.
Trump added that “discussions were ongoing” but gave no indication whether a ceasefire was imminent. The remarks hardened an earlier signal that had briefly calmed markets. On Wednesday, Trump had told reporters the U.S. could withdraw from Iran within “two to three weeks” even without a formal agreement.
Before his speech, Trump posted on social media that Iran’s “new regime president” had requested a ceasefire, appearing to open the door to negotiations. Iran’s Foreign Ministry denied the claim, with state media reporting that Tehran had not sought a truce.
Trump offered no details on any measures that could lead to the Strait of Hormuz being reopened.
Threats to shipping have mounted as the conflict has deepened. Qatar’s defence ministry said an oil tanker leased to QatarEnergy was struck by an Iranian cruise missile in Qatari waters on Wednesday.
Some market participants said they had stopped trading cargoes priced off the Dubai Middle East benchmark, which is typically used to value close to a fifth of global crude supply, citing the inability to use ports inside the Strait of Hormuz.
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