Oil Prices Surge as Trump Vows to Keep Hitting Iran

Stocks tumble globally as Middle East tensions escalate

Apr. 2, 2026 at 12:12pm

Got story updates? Submit your updates here. ›

Oil prices jumped more than 7% to over $109 per barrel after U.S. President Donald Trump said the U.S. would intensify attacks on Iran in the coming weeks. The renewed rhetoric sent global stock markets tumbling, with the pan-European FTSEurofirst 300 and Wall Street futures down 1.3% to 1.8%. Bond yields also spiked on expectations of higher inflation and interest rates.

Why it matters

The escalating conflict between the U.S. and Iran is roiling global financial markets, with oil prices surging and stocks plunging. This volatility could have widespread economic impacts, especially for oil-importing countries and industries sensitive to energy costs.

The details

After Trump said the U.S. would "hit Iran extremely hard" in the coming weeks, Brent crude jumped over 7% to above $109 per barrel. The renewed tensions sent European and U.S. stock futures down 1.3% to 1.8%, while government bond yields rose on expectations of higher inflation and interest rates. The dollar also strengthened as a safe-haven currency, pushing the euro down 0.5% against the greenback.

  • On Wednesday, Trump said the U.S. campaign against Iran was nearing an end.
  • In a prime-time address on Wednesday, Trump said the U.S. would hit Iran "extremely hard" in the coming 2-3 weeks.

The players

Donald Trump

The President of the United States, who vowed to intensify U.S. attacks on Iran in the coming weeks.

Iran

The target of the U.S. military campaign that has escalated tensions in the Middle East and roiled global financial markets.

Got photos? Submit your photos here. ›

What they’re saying

“Over the past 48 hours, Tehran and Washington have exchanged a cacophony of statements, some suggesting rising odds of de-escalation. At the same time, kinetic action has continued unabated.”

— Felix-Antoine Vezina-Poirier, BCA Research Strategist

“The only thing that really matters is whether the Strait of Hormuz will open soon. Trump's speech doesn't imply this is likely to happen as quickly as the markets were expecting.”

— Prashant Newnaha, Senior Rates Strategist

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The escalating conflict between the U.S. and Iran is causing significant volatility in global financial markets, with oil prices surging and stocks tumbling. This instability could have widespread economic impacts, especially for oil-importing countries and industries sensitive to energy costs.