Oil prices jumped more than seven percent on Thursday, hitting a four‑year peak, while equity markets slipped after President Donald Trump warned that the United States could maintain its blockade of Iranian ports for months. The warning followed a report that Trump would be briefed on possible new military strikes against Iran.
The United States has been enforcing a naval blockade of the Strait of Hormuz, a vital chokepoint through which roughly one‑fifth of global oil and gas supplies pass. Tehran submitted a new proposal this week to reopen the strait, but U.S. officials said the president doubts Iran is negotiating in good faith. According to the Wall Street Journal, Trump instructed senior national‑security officials to prepare for a prolonged blockade aimed at compelling Tehran to abandon its nuclear programme.
At an oil‑industry gathering on Tuesday, a senior White House official, speaking on condition of anonymity, said Trump discussed measures to “alleviate global oil markets” and to extend the blockade if necessary while limiting the impact on American consumers. Axios cited two unnamed sources who said Admiral Brad Cooper, commander of U.S. Central Command, would brief Trump on potential military options. The briefing, they added, indicates the president is seriously weighing a resumption of major combat operations that were paused three weeks ago for diplomatic talks.
Trump has previously described the blockade as “more effective than bombing” and warned that Iran “can’t have a nuclear weapon.” In a Truth Social post, he wrote that Iran must “get smart soon” and shared an illustration of himself holding an assault rifle with the caption “NO MORE MR. NICE GUY!”
Despite the rhetoric, some market analysts note a disconnect between Trump’s statements and his actions. Michael Brown of Pepperstone said the heightened language does not yet translate into a clear move toward escalation, and that negotiations remain stuck in a stalemate. He added that market sentiment appears to be shifting from “no news is good news” to “no news is bad news.”
The prospect of a continued closure of the Strait of Hormuz sent Brent crude for June delivery up 7.1 % to $126.41 a barrel in Asian trade, while West Texas Intermediate rose 3.4 % to $110.31 before easing later in the session. Traders are increasingly cautious that the crisis may endure longer than initially expected.
Equity markets fell across Asia, with major indices in Tokyo, Hong Kong, Sydney, Seoul, Taipei, Mumbai, Bangkok, Manila and Jakarta all lower. Singapore and Wellington posted modest gains, while Shanghai was unchanged. The U.S. dollar, viewed as a safe‑haven asset, strengthened against most currencies.
The rally in technology stocks driven by artificial‑intelligence demand continued to support Asian markets. Samsung Electronics reported a 750 % surge in operating profit on strong AI‑chip sales, while Microsoft, Meta and Alphabet posted earnings that beat forecasts.
In the United States, the Federal Reserve held interest rates steady, with three of twelve voting members opposing an easing bias in the policy statement – the highest dissent since 1992. One member, Stephen Miran, a Trump appointee, advocated for a quarter‑point rate cut. The meeting was the last with Jerome Powell as chair, as Kevin Warsh is set to take over next month. Trump has repeatedly criticized Powell for not cutting rates more quickly.
Key figures at 0515 GMT: West Texas Intermediate up 2.7 % at $109.78; Brent up 4.8 % at $123.71; Tokyo Nikkei down 1.2 %; Hong Kong Hang Seng down 1.3 %; New York Dow down 0.6 % at 48,861.81; London FTSE 100 down 1.2 % at 10,213.11.
