Brent crude oil prices surged sharply on Thursday, reaching $78.68 per barrel following fresh US military strikes on Iran and renewed concerns over supply disruptions in West Asia, according to TheHindu-C. The international benchmark rose 0.95% ($0.74) from the previous close of $78.02, hitting a day’s high of $79.15 per barrel. US benchmark West Texas Intermediate (WTI) crude also climbed, trading at $74.22 per barrel, up 0.92% ($0.68).
US Strikes and Geopolitical Tensions
The rally extended after-hours gains on Wednesday, when both Brent and WTI had climbed more than $1. The US Central Command confirmed that American forces carried out fresh strikes on Iran on Wednesday night, just hours after President Donald Trump declared an end to the eight-week ceasefire with Tehran. Trump, speaking at the NATO summit in Turkey, said the ceasefire was “over,” reigniting fears of escalating conflict in West Asia. The president also signalled the possibility of another round of military strikes against the Islamic Republic, warning that further action could follow.
Market Reaction
Oil prices settled sharply higher on Wednesday, with Brent crude closing 5.43% higher at $78.19 per barrel and WTI rising 4.37% to $73.52 per barrel. US equities ended mixed: the Dow Jones Industrial Average tumbled 576.76 points, or 1.09%, to 52,348.39; the S&P 500 slipped 0.28% to 7,482.71; while the Nasdaq Composite edged up 0.2% to 25,870.65. The table below summarises the key price movements:
| Instrument | Price/Level | Change |
|---|---|---|
| Brent crude (current) | $78.68/barrel | +0.95% ($0.74) |
| WTI crude (current) | $74.22/barrel | +0.92% ($0.68) |
| Brent crude (Wednesday settle) | $78.19/barrel | +5.43% |
| WTI crude (Wednesday settle) | $73.52/barrel | +4.37% |
| Dow Jones Industrial Average | 52,348.39 | -1.09% |
| S&P 500 | 7,482.71 | -0.28% |
| Nasdaq Composite | 25,870.65 | +0.2% |
President Trump’s Statements
Trump accused Iranian leaders of repeatedly shifting their position during negotiations, calling them “cuckoo.” He claimed that Tehran had privately indicated its willingness to reach a deal before publicly reversing its stance. “They’ll agree on everything, and then they’ll go and have a news conference and say we never even talked about it,” Trump said, as reported by TheHindu-C. The president had previously said Washington had already struck Tehran “very hard” in Tuesday’s attacks.
Implications for Commodity Traders
The surge in crude prices highlights the acute sensitivity of oil markets to geopolitical risk in West Asia. Traders are now pricing in a higher probability of supply disruptions, particularly if the conflict escalates further or affects shipping routes. The breakdown of the eight-week ceasefire and the resumption of US strikes have removed a key de-escalation factor that had previously moderated prices. Market participants will closely monitor any further statements from the Trump administration as well as any retaliatory moves by Iran that could tighten global supply. The current price levels reflect a risk premium that could expand quickly if military activity intensifies or if key infrastructure is threatened.
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