Crude oil prices saw a massive jump in the evening trade on Friday, 6 March, after US President Donald Trump demanded “unconditional surrender” from Iran, raising fears that the ongoing war will last longer than expected and could stoke global inflation.
Reacting to this development, Brent crude futures jumped 7.5% to cross $90 per barrel for the first time since April 2024, reaching $91.84. West Texas Intermediate crude advanced 11% to the day’s high of $89.62 per barrel. WTI was last seen around these levels in October.
With today’s jump, both Brent and WTI have strengthened 24.55% and 32%, respectively, reviving fears among investors that higher prices will increase consumer prices across markets and could also push central banks to hold rates for longer.
What did Trump say about the ongoing war with Iran?
Trump said there would be “no deal with Iran” unless it agrees to “unconditional surrender,” outlining a hardline stance as the conflict in the Middle East continues to escalate.
“There will be no deal with Iran except UNCONDITIONAL SURRENDER!” Trump wrote on Truth Social.
The US President said that after such a development, the United States and its allies would help rebuild Iran and restore its economy.
“After that, and the selection of a GREAT & ACCEPTABLE leader(s), we, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before,” he wrote.
Trump added that Iran could have a strong future if it follows that path. “IRAN WILL HAVE A GREAT FUTURE. ‘MAKE IRAN GREAT AGAIN (MIGA!).’”
These comments from Trump came at a time when attacks in the Middle East intensified further, with Israel beginning a broad wave of strikes on Iranian regime infrastructure, while Iranian drones and missiles continued to target nations across the Gulf. Saudi Arabia, Qatar, Kuwait, Bahrain, and the UAE have all reported interceptions since last night.
Earlier, Trump said Iran is being demolished “ahead of schedule and at levels people have never seen before,” claiming the country now has “no air force, no air defence” and that its air force is “gone.”
Meanwhile, Iranian Foreign Minister Abbas Araghchi told NBC News recently that his country had no intention of negotiating and was ready for a ground invasion.
Brent jumps 52% since late December
Oil markets have been rocked by the conflict, which has ensnared about a dozen nations since the United States and Israel launched their campaign on February 28.
To be precise, prices have been marching higher since late December and have strengthened by 52% (taking today’s high into account) so far. The last time Brent showed a similar rally was between November 2021 and March 2022, when it jumped 68.5% in just five months.
At the start of the Russia–Ukraine war in 2022, Brent crude topped $139 per barrel. As per available data, it touched a peak of $148 in July 2008 before crashing to $36.
The ongoing US–Iran conflict has led to the closure of the Strait of Hormuz, disrupting energy flows to global markets and prompting producers to begin shutting in output.
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