U.S. oil prices topped $110 a barrel on Thursday after President Donald Trump vowed to hit Iran "extremely hard," according to MarketWatch. The announcement sent shockwaves through global energy markets, with traders scrambling to reassess the timeline and intensity of the Middle East conflict that has already upended supply chains across multiple continents.
The scale of the price movement is historic. According to OilPrice.com, West Texas Intermediate crude has jumped 51% over the past month, currently trading above $100 per barrel. The Wall Street Journal reported that this $34.36 monthly price climb represents the highest monthly increase since WTI futures began trading in 1983. The ripple effects are already visible at the pump: gasoline has topped $4 per gallon and diesel fuel sits at $5.50 per gallon, according to OilPrice.com.
Trump's latest rhetoric reversed market expectations. Before his Wednesday address, oil prices had dropped on hopes of de-escalation, but his statement that "we are going to finish the job" sent crude surging. According to OilPrice.com, Brent crude was trading at $107.49 per barrel, up over 6% from Wednesday, while WTI climbed over 5% to $105.25 per barrel. The president indicated the U.S. would continue attacking Iran, including potential strikes on energy infrastructure.
The Strait of Hormuz Becomes a Chokepoint
The real pressure point remains the Strait of Hormuz, where traffic has been at a near standstill for over a month. According to OilPrice.com, the blockade has prompted the Group CEO of ADNOC to call on the world to act together to protect the free flow of energy through the strait, describing Iran's actions as an act of "global economic extortion."
The impact extends far beyond oil markets. India, which imports 90% of its LPG through the Strait of Hormuz, is facing a severe supply crisis. According to OilPrice.com, around 60% of Indian households rely on LPG for their primary cooking fuel, and the blockage has been immediately felt by consumers. The Indian government has cut LPG supplies to commercial establishments and industries to preserve household access. In response, India's Ministry of Finance announced on Thursday that it is providing full customs duty exemption on 40 critical petrochemical products until June 30, 2026, according to OilPrice.com.
India is also accelerating a longer-term shift away from LPG dependency. According to OilPrice.com, the country is moving to piped gas for household use as a way to reduce vulnerability to future supply disruptions. Reuters reported that India is looking to turn the LPG import crisis into a push for expanded piped gas infrastructure.
Global Energy Infrastructure Under Stress
The crisis is prompting countries to revisit long-shelved infrastructure projects. According to the Financial Times, Gulf states are considering new pipelines to avoid the Strait of Hormuz, with plans that would replicate Saudi Arabia's East-West pipeline despite the huge cost and complexity involved.
Australia, the world's third-largest LNG supplier, is also taking precautions. According to Reuters, Australia is weighing whether to secure domestic gas supplies as winter concerns grow. OilPrice.com reported that Australia's government intends to consider using emergency powers to protect domestic natural gas supply in case of a shortfall on its east coast in the third quarter of 2026.
Meanwhile, energy traders who typically thrive on volatility have been caught off guard. According to the Financial Times, the world's top energy traders were "wrongfooted in the early days of Iran war," with the scale of the crisis outpacing their usual hedging strategies.
The immediate outlook remains uncertain. Reuters reported that OPEC+ is likely to weigh a further oil output hike on Sunday, though any production increase faces headwinds from supply disruptions elsewhere. According to Reuters, Russian oil output cuts are unavoidable as drone attacks shrink exports, adding another layer of complexity to global supply dynamics.
Reporting based on coverage from MarketWatch, OilPrice.com, Reuters, and the Financial Times.