US benchmark WTI crude futures rose by as much as 14pc in early trading today before paring gains as president Donald Trump vowed to hit Iran "extremely hard" over the next two or three weeks.
May Nymex WTI was up by about 9pc at $108.84/bl at 11am ET Thursday, after trading as high as $113.97/bl earlier in the session.
In his first prime time address to the US public since launching the war with Iran on 28 February, Trump on Wednesday said the US is on track to finish all of its military objectives in the war against Iran "very shortly", but also said he expects the war will continue for weeks, during continued negotiations with Iran.
"We're going to hit them extremely hard over the next two to three weeks," Trump said. "We're going to bring them back to the stone ages, where they belong."
North Sea Dated crude also hit an 18-year high today, while European jet and diesel prices continued to hit consecutive record highs.
Trump used the speech to repeat messages he had posted over the last few days on his social media platform. Countries that depend on oil shipped through the strait of Hormuz should "build up some delayed courage", Trump said, and take control of the waterway where 20pc of global oil flows.
Iranian president Masoud Pezeshkian [said late on 31 March}(https://direct.argusmedia.com/newsandanalysis/article/2809002) that Tehran has the "necessary will" to bring the conflict with the US and Israel to an end but only once it has ironclad guarantees that they will not attack Iran in the future.
Meanwhile, Iran has given assurances that Philippine-flagged vessels will be granted safe passage through the strait of Hormuz, the Philippine Department of Foreign Affairs (DFA) said on 2 April.
The agreement was made during a phone call between foreign affairs secretary Maria Theresa Lazaro and Iran's foreign minister Seyed Abbas Araghchi, DFA said.
Several other southeast Asian governments recently stepped up to initiate negotiations with Iran, which has since resulted in the safe passage of some vessels through the strait.
The war in the Middle East is in its fifth week, with the US and Israel continuing their heavy aerial campaign against numerous targets across Iran.
By Eunice Bridges
