Oil prices rallied yesterday by nearly five per cent with the global benchmark, Brent crude rising to $71.62 a barrel, while Bonny light crude went as high as $78 a barrel yesterday for the first time since last August. The U.S. benchmark, West Texas Intermediate (WTI) Crude, was also trading higher, up by 4.79 per cent to $66.24. WTI topped $65 per barrel for the first time since September.

The rise was predicated on the stance of the U.S. President Donald Trump against Iran, warning the country of a “massive armada” of U.S. Navy ships is headed to the Persian Gulf.

The global markets have since reacted to the renewed tension in the world’s most important oil-producing and exporting region as tensions between the U.S. and Iran worsened, raising concerns over disruptions to the global flow of crude.

“The situation with Iran continues to escalate,” said Josh Young, chief investment officer at Bison Interests, an oil and gas investment firm.

“If even a portion of Iranian supplies come off the market, that would be enough to sustain recent gains,” he told MarketWatch.

That could also lead to further gains, “depending how much more comes off and if other supplies are put at more direct risk.”

WTI crude for March delivery was up 4.8 per cent at $66.21 a barrel on the New York Mercantile Exchange after trading as high as $66.40. That was the highest intraday level since Sept. 26, according to Dow Jones Market Data.

March Brent crude tacked on 4.7 per cent to $71.62 on ICE Futures Europe, poised for its highest finish since July.

WTI oil futures top $66 a barrel. Prices had settled on Wednesday at a four-month high as President Donald Trump renewed its threats on Iran, pressuring it to reach a nuclear deal.

“Time is running out; it is truly of the essence!” he said in the post. In response, Iran’s mission to the United Nations in New York posted on X that Iran was ready for dialogue, adding: “But if pushed, it will defend itself and respond like never before”

“The timeline on a U.S. attack on Iran appears to be drawing near,” Robert Yawger, director of energy futures at Mizuho Securities USA, wrote in a note yesterday.

“A quick read through of the mainstream press generally seems to tilt towards surgical strikes on the Iranian leadership, with the goal of forcing regime change,” he said.

“Targets would include military bases used by the Revolutionary Guard and the Basij militia, ballistic missile sites, and Iran’s nuclear programme.” The U.S. launched air and sea strikes on three nuclear sites in Iran in June of last year.

Iran produces around 3.3 million barrels per day of oil, with production “generally surviving multiple crisis over the years,” Yawger said.

After a week of relative calmness in the U.S. rhetoric toward Iran, President Trump warned the Islamic Republic of a Venezuela-style “mission,” at least this is what the President suggested in a post on his Truth Social platform.

“A massive Armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose,” President Trump posted.

“It is a larger fleet, headed by the great Aircraft Carrier Abraham Lincoln, than that sent to Venezuela. Like with Venezuela, it is, ready, willing, and able to rapidly fulfill its mission, with speed and violence, if necessary,” the President continued.

He urged Iran “to make a deal” pledging “NO NUCLEAR WEAPONS,” otherwise, President Trump said, “The next attack will be far worse! Don’t make that happen again.”

Iran, for its part, said that its army is ready to “immediately and powerfully” respond to any possible attack by the United States.

“Our brave Armed Forces are prepared—with their fingers on the trigger—to immediately and powerfully respond to ANY aggression against our beloved land, air, and sea,” Iran’s Foreign Minister Abbas Araghchi posted on X.

Commenting on the latest flare-up in the Middle East, ING commodities strategists Warren Patterson and Ewa Manthey said on Thursday, “Clearly, this more aggressive rhetoric has left the oil market nervous about the potential for supply disruptions.”