Oil prices spiked sharply in early trading Thursday after President Donald Trump declared that the United States military would attack Iran "VERY HARD" and seize the country's "oil infrastructure points," including its primary export terminal.
The escalation marks a dramatic shift from diplomatic posturing to explicit threats against Iran's economic lifeline, sending crude futures higher as markets immediately priced in the risk of a severe supply disruption.
The threat specifically targets Kharg Island, the chokepoint through which the vast majority of Iran's crude exports flow.
Seizing or destroying the island's loading facilities would effectively remove a significant volume of global supply from the market, a scenario that traders are rapidly factoring into forward curves.
Brent crude and WTI futures both extended their gains, reflecting the heightened probability of a physical supply shock rather than a mere rhetorical standoff.
This development follows a rapid deterioration in U.S.-Iran relations over the past week.