President Trump stated that he 'might do things that raise the price of oil,' and the oil market reacted immediately, with crude surging 7.5% to around $80 a barrel, according to N12 market reports.
Oil prices surged 7.5% to around $80 a barrel Wednesday evening after President Donald Trump said he 'might do things that raise the price of oil,' according to N12 market reports. The jump came shortly after Trump's remarks at 17:32 Jerusalem, which were published in a series of statements by The Zioneer. The move marks the second significant oil price spike of the day.
Earlier Wednesday, at 13:02 Jerusalem, The Zioneer reported oil prices rose 5% following Trump's comments on the memorandum of understanding with Iran and ongoing negotiations. The market then reacted again at 17:32 Jerusalem, when three separate statements from Trump were published: first, he hinted at actions that could raise oil prices; second, he said any such spike would be temporary; and third, he called the Iranians 'messed up' and 'behaving very badly.' The cumulative effect of these statements drove crude to $80 a barrel.
The oil market has been highly volatile in recent weeks, with prices swinging on US-Iran diplomatic signals. The Zioneer has reported a series of sharp movements: a surge above $93 on June 10 after Trump threatened Iran, a decline to near $75 on June 24, and a 6% spike to $76.5 on US strikes on Bandar Abbas. The current spike is the latest in a pattern of acute sensitivity to statements from the president.
Trump did not specify what actions he might take, and his earlier suggestion that any price rise would be temporary adds an element of uncertainty. The market is now pricing in a risk premium, but the direction remains dependent on further policy announcements.
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