U.S. oil futures recorded their biggest gain in six years on Thursday.
Oil futures gained more than $11 a barrel to close the holiday-shortened week at $111.54 a barrel. It was the biggest one-day dollar gain since, April 21, 2020, as prices were climbing back from the Covid crash.
Stocks, meanwhile, climbed nearly all the way back from a steep Thursday-morning selloff.
Oil prices had declined during the two trading sessions leading up to remarks from President Trump that left room for both bulls and bears.
In an address late Wednesday, Trump said he was still seeking a diplomatic agreement to end the conflict and that U.S. military aims would be completed “very shortly.” But he also vowed to hit Iran “extremely hard” in the coming weeks and pummel the country “back to the Stone Ages.”
The lack of a clear timeline eroded hopes on Wall Street that the war might come to a speedy end and the Strait of Hormuz could open soon, allowing oil to once again flow freely from the Persian Gulf to world markets.
The Dow industrials, Nasdaq and S&P 500 all fell sharply at the open before recovering ground. Asian and European stocks declined.
Adding to the angst in energy markets, Trump suggested again that opening the strait was a problem for other countries. Brent crude traded more than 5% higher, above $106 a barrel.
