• Brent crude extends gains, rising 2.7% after Trump vows to hit Iran hard again.
  • WTI jumps 3.5%, as geopolitical risk premium intensifies amid potential supply disruption.
  • Markets brace for volatility, with traders eyeing Strait of Hormuz chokepoint.

Oil prices spiked on Wednesday after President Donald Trump declared, “We’re going to hit Iran hard again today,” escalating rhetoric that has already sent crude futures higher. Brent crude rose 2.7% to trade near $76 per barrel, while West Texas Intermediate climbed 3.5%, crossing the $72 mark. The sharp moves reflect growing anxiety over potential disruptions to output from the Middle East, which accounts for about a third of global supply.

“The market is pricing in a real risk of supply outages,” said a senior oil trader at a European hedge fund, speaking on condition of anonymity. “Even a temporary closure of the Strait of Hormuz could send prices into the $90s.” The strait, through which about 20% of the world’s petroleum passes, remains the key flashpoint.

The latest threat follows weeks of heightened tensions between Washington and Tehran, with the US accusing Iran of targeting tankers and military assets in the region. Iran has denied involvement, but its leadership has warned of retaliation against any “aggression.” Trump’s comments came during a meeting with defense officials, according to people familiar with the matter.

Analysts say the spike could be short-lived if de-escalation signals emerge. “History suggests these moves often fade within days,” noted a macroeconomic strategist at a London-based bank. “But the risk of a sustained rally is real if actual military confrontation occurs.”

Energy stocks rallied alongside crude, with Exxon Mobil and Chevron each rising over 1.5%. Meanwhile, airlines and logistics firms saw shares slip on concerns over higher fuel costs. The US dollar edged lower, while gold gained 0.3% as investors sought havens.

*Correction: An earlier version of this article misstated the percentage gain for WTI. It has been corrected to 3.5%.