Oil prices jumped to their highest level since 2008 after President Trump's threatening rhetoric toward Iran. Dated Brent surged to $141.36 per barrel, up from $128.46 a day earlier, catching market participants off guard. Traders expected de-escalation talk but received the exact opposite, with Trump vowing to hit Iran "extremely hard" and threatening to bomb them "back to the stone ages."

The surge reflects growing concerns about potential supply disruptions through the Strait of Hormuz, which handles more than a fifth of global oil supplies. The International Energy Agency has warned of the worst oil supply disruption in history. Oxford Economics estimates a six-month interruption would create a 13mn barrels per day gap in global supplies.

Brent crude settled 7.8% higher at $109.03 per barrel, while West Texas Intermediate jumped more than 11% to $111.54. This represents an unprecedented shortage of around 12% of global consumption. Analysts warn of worldwide recession with rationing concentrated in emerging economies and significant supply chain disruption.