New Delhi: The Thursday morning brought significant news for the stock market and the global economy. Following US President Donald Trump’s speech on the Iran war, crude oil prices took a dramatic U-turn. In his first address since the start of conflict, Trump hinted at ending the war, but also challenged other countries to secure the Strait of Hormuz.
After his speech, crude oil, which had been falling below $100, suddenly surged to over $105.
What did Trump say in speech about oil?
While addressing the nation, Donald Trump pointing at other countries said that “Save your own oil, or buy it from us.”
Trump in his speech stated that the United States does not need oil from the Strait of Hormuz.
“There’s no country like us anywhere in the world, and we’re in great shape for the future. The United States imports almost no oil through the Hormuz Strait, and won’t be taking any in the future. We don’t need it. We haven’t needed it, and we don’t need it,” Trump said.
What did Trump say to other countries?
The US President also urged other countries that rely on the Strait of Hormuz for oil to “take care of the passage, grab and cherish it”.
“And the countries of the world that do receive oil through the Hormuz Strait must take care of that passage. They must cherish it. They must grab it and cherish it,” Trump said.
Did Trump offer to help countries?
The US President said the countries that depend on fuel from Strait Of Hormuz should take the lead in “protecting the oil”, while the US will help them.
“They can do it easily. We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on. So, to those countries that can’t get fuel, many of which refuse to get involved in the decapitation of Iran, we had to do it ourselves,” he said.
Trump also offered that countries that are unable to access oil due to the war could buy oil from the United States. He said, “Iran is defeated, we will finish the job very soon.”
What happen to crude oil price?
Oil prices were falling before Donald Trump’s speech, but his tough stance scared the market again.
Brent Crude suddenly jumped by about 4.7 per cent from the level of $99 to reach $105.95. WTI crude is also trading higher by more than 3 per cent at $103.19.
According to experts, until the Strait of Hormuz is completely secure, such surge in oil prices will continue.
Even though oil prices have risen, the “hope of an end to the war” has given the stock markets a boost.
On Wall Street, the Nasdaq closed 1.16 per cent higher on Wednesday, while the Dow Jones Industrial Average gained 0.48 per cent.
In Asian markets, Japan’s Nikkei and South Korea’s Kospi are trading 0.8 per cent higher this morning, with investors confident the US will soon exit this war.
What are the signals for the Indian market today?
Today could be a mixed day for the Indian market. The Nifty is trading at 22,819, down 32 points this morning, indicating a flat opening. Earlier on Wednesday, the Sensex closed with a strong gain of 1,186 points and the Nifty with a strong gain of 348 points. Foreign investors (FIIs) sold shares worth Rs 8,072 crore on Wednesday, while domestic investors (DIIs) bought shares worth Rs 7,019 crore, helping the market recover.
