Crude oil surges 11% as Trump rules out Iran deal without ‘unconditional surrender’; Brent tops $90
On 6 March, crude oil prices jumped significantly following Trump's demands for Iran's unconditional surrender. Brent crude reached $91.84, while WTI hit $89.62. The ongoing US-Iran conflict is causing market instability and fears of rising consumer prices due to increased oil costs.
Crude oil prices saw a massive jump in the evening trade on Friday, 6 March, after US President Donald Trump demanded “unconditional surrender” from Iran, raising fears that the ongoing war will last longer than expected and could stoke global inflation.
Reacting to this development, Brent crude futures jumped 7.5% to cross $90 per barrel for the first time since April 2024, reaching $91.84. West Texas Intermediate crude advanced 11% to the day's high of $89.62 per barrel. WTI was last seen around these levels in October.
With today's jump, both Brent and WTI have strengthened 24.55% and 32%, respectively, reviving fears among investors that higher prices will increase consumer prices across markets and could also push central banks to hold rates for longer.
What did Trump say about the ongoing war with Iran?
Trump said there would be "no deal with Iran" unless it agrees to “unconditional surrender,” outlining a hardline stance as the conflict in the Middle East continues to escalate.
“There will be no deal with Iran except UNCONDITIONAL SURRENDER!” Trump wrote on Truth Social.
The US President said that after such a development, the United States and its allies would help rebuild Iran and restore its economy.
“After that, and the selection of a GREAT & ACCEPTABLE leader(s), we, and many of our wonderful and very brave allies and partners, will work tirelessly to bring Iran back from the brink of destruction, making it economically bigger, better, and stronger than ever before,” he wrote.
Trump added that Iran could have a strong future if it follows that path. “IRAN WILL HAVE A GREAT FUTURE. ‘MAKE IRAN GREAT AGAIN (MIGA!).’”
These comments from Trump came at a time when attacks in the Middle East intensified further, with Israel beginning a broad wave of strikes on Iranian regime infrastructure, while Iranian drones and missiles continued to target nations across the Gulf. Saudi Arabia, Qatar, Kuwait, Bahrain, and the UAE have all reported interceptions since last night.
Earlier, Trump said Iran is being demolished “ahead of schedule and at levels people have never seen before,” claiming the country now has “no air force, no air defence” and that its air force is “gone.”
Meanwhile, Iranian Foreign Minister Abbas Araghchi told NBC News recently that his country had no intention of negotiating and was ready for a ground invasion.
Brent jumps 52% since late December
Oil markets have been rocked by the conflict, which has ensnared about a dozen nations since the United States and Israel launched their campaign on February 28.
To be precise, prices have been marching higher since late December and have strengthened by 52% (taking today's high into account) so far. The last time Brent showed a similar rally was between November 2021 and March 2022, when it jumped 68.5% in just five months.
At the start of the Russia–Ukraine war in 2022, Brent crude topped $139 per barrel. As per available data, it touched a peak of $148 in July 2008 before crashing to $36.
The ongoing US–Iran conflict has led to the closure of the Strait of Hormuz, disrupting energy flows to global markets and prompting producers to begin shutting in output.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
About the Author
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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