WASHINGTON, D.C. / THE GULF — Global energy markets experienced a historic "see-saw" effect over the last 24 hours. After hitting four-year highs of nearly $120 per barrel on Monday morning, crude oil prices collapsed by over 6% on Tuesday, March 10, 2026. The volatility comes in the wake of a dual-pronged strategy from the White House: a devastating military threat coupled with an optimistic claim that the war against Iran is nearing a swift conclusion.
The "Twenty Times Harder" Threat In a series of public statements and a late-night press conference, President Donald Trump issued a formidable warning to the new leadership in Tehran. Responding to the Islamic Revolutionary Guard Corps (IRGC)'s vow that they would not let "one litre of oil" leave the region, Trump declared that any attempt to impede the Strait of Hormuz would result in a response "twenty times harder" than previous strikes.
"Death, Fire, and Fury will reign upon them," Trump stated, using rhetoric reminiscent of his earlier warnings to North Korea. He specifically noted that the U.S. would target "easily destroyable" infrastructure that would make it "virtually impossible for Iran to ever be built back as a nation." The President framed this hardline stance as a "gift" to global economies, specifically mentioning China, which relies heavily on the 20% of global oil supply that transits through the narrow chokepoint.
Market Reassurance Amid Chaos The primary driver for the sudden drop in oil prices, however, was Trump’s insistence that the military objectives of Operation Epic Fury are already "pretty well complete." Despite the IRGC’s insistence that they—not the Americans—would determine the end of the war, Trump told reporters that Iran's navy, air force, and communications are effectively non-existent. "They have nothing left in a military sense," Trump stated, adding that the conflict could come to an end "very soon."
As a result, Brent crude futures fell back to $92.45 a barrel, while U.S. West Texas Intermediate (WTI) dropped to $88.65. The relief rally spread to Asian and European stock markets, with Japan's Nikkei 225 jumping 2.5% and South Korea’s Kospi surging 6% in early trade today.
A Balancing Act for Global Supply To further stabilize the market, the Trump administration is reportedly weighing several economic maneuvers, including easing oil-related restrictions on other global producers to ensure more crude reaches India and China. Additionally, a potential coordinated release of emergency oil reserves by G7 nations remains on the table. While the threats of "fire and fury" have temporarily cowed the markets into a lower price bracket, analysts warn that with the Strait of Hormuz still effectively closed by the threat of Iranian "scatter" missiles and drones, the volatility is far from over.
English (US) ·