Oil prices climbed sharply after U.S. President Donald Trump signalled that American military action against Iran would continue, stoking fears of prolonged supply disruptions. Brent crude rose about 7.6%, nearing $109 per barrel.

The jump erased hopes of an early end to geopolitical tensions, which have already disrupted major shipping routes and heightened energy market volatility. Traders reacted quickly to the president’s remarks, pushing benchmark futures higher.

Higher oil prices are feeding into broader inflation concerns, increasing costs for transportation and manufacturing sectors worldwide. This can squeeze corporate margins and consumer spending capacity.

Investors are also weighing the impact on central bank policies, with some analysts saying elevated energy costs reduce the likelihood of near-term interest rate cuts.

Energy markets remain a key driver of business sentiment and financial market performance, with continued uncertainty expected to shape investment decisions in the coming weeks.

Source: Reuters