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 hub, Kharg Island.
The remarks, first reported by CNBC, signal a direct escalation in U.S.-Iran tensions and immediately triggered a flight to safety and a repricing of physical supply risk in global energy markets.
The threat targets Iran's main crude export terminal, which handles the vast majority of the country's oil shipments. the possibility of a severe disruption to Persian Gulf flows, pushing Brent and WTI higher on concerns that any military action or infrastructure seizure could temporarily knock millions of barrels per day offline.
Traders are closely monitoring the Strait of Hormuz, where an Apache helicopter was shot down earlier this week, heightening fears of a broader regional conflict.