Key Moments
- Major U.S. energy stocks and the XLE ETF (NYSE:XLE) advanced as oil and gas prices moved sharply higher.
- Brent crude futures climbed nearly 8% to $109.12 per barrel, while U.S. West Texas Intermediate futures rose 8.7% to $108.84.
- President Donald Trump signaled intensified U.S. military action against Iran, stoking concerns over prolonged disruptions to global crude flows.
Energy Equities Gain on Rising Crude Prices
Investing.com – Shares of leading oil and gas producers rallied on Thursday as crude prices surged following comments from President Donald Trump about escalating military action against Iran, fueling worries about sustained interruptions to global oil supplies.
Chevron and Exxon Mobil each advanced sharply, with Chevron up 3% and Exxon Mobil gaining 3.4%. ConocoPhillips also traded higher, rising 3.1% in premarket activity by 07:25 ET. The broader energy sector tracked the move, with the XLE ETF (NYSE:XLE) adding 2.9%.
Crude Benchmarks Spike After Early Weakness
Oil benchmarks reversed an earlier dip to trade significantly higher. Brent crude futures were up nearly 8% at $109.12 per barrel, while U.S. West Texas Intermediate futures increased 8.7% to $108.84. Both contracts had opened the session modestly lower after falling in the prior trading day.
| Instrument | Move | Price / Level | Context |
|---|---|---|---|
| Chevron | +3% | – | Premarket by 07:25 ET |
| Exxon Mobil | +3.4% | – | Premarket by 07:25 ET |
| ConocoPhillips | +3.1% | – | Premarket by 07:25 ET |
| XLE ETF (NYSE:XLE) | +2.9% | – | Broad energy sector gauge |
| Brent crude futures | Nearly +8% | $109.12 per barrel | After opening modestly lower |
| WTI futures | +8.7% | $108.84 per barrel | After previous-session retreat |
Trump Signals Escalation in Iran Campaign
In a televised address, Trump indicated that the U.S. military would step up its operations against Iran in the coming weeks, framing the effort as aimed at stopping Tehran from obtaining 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 noted that “discussions were ongoing” but did not suggest that a ceasefire was close. His comments contrasted with a prior message that had briefly eased market concerns. On Wednesday, he told reporters that the U.S. could exit Iran within “two to three weeks” even without a formal accord.
Mixed Signals on Ceasefire Prospects
Ahead of his speech, Trump wrote on social media that Iran’s “new regime president” had sought a ceasefire, which appeared to leave room for potential talks. Iran’s Foreign Ministry rejected that characterization, and state media reported that Tehran had not requested a truce.
Trump did not outline any concrete steps that might lead to the reopening of the Strait of Hormuz, a critical conduit for oil shipments.
Shipping Risks and Market Disruptions Intensify
Risks to maritime traffic have grown as the conflict has escalated. Qatar’s defense ministry reported that an oil tanker leased to QatarEnergy was hit by an Iranian cruise missile in Qatari waters on Wednesday.
Some market participants reported halting trades in cargoes priced off the Dubai Middle East benchmark, which is commonly used to value close to a fifth of global crude supply. They cited an inability to utilize ports inside the Strait of Hormuz as a key factor behind the pullback in activity.
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