Meanwhile, OPEC may release more oil to compensate for Hormuz closure: File Image/Pixabay

A day after investors caused oil to plummet based on the perception that U.S. president Donald Trump was committed to ending the war with Iran soon, a Wednesday night address by Trump in which he reiterated the same vow compelled them to reverse sentiment and resume the commodity’s upward trajectory – with one key benchmark on Thursday recording its biggest gain in six years.

Thursday’s end-of-week session for Easter saw West Texas Intermediate leap more than $11 to close at $111.54 per barrel, the biggest one-day gain since April 21, 2020 following the Covid crash.

Brent settled down $7.87, or 7.7 percent higher, at $109.03 per barrel.

In his address, Trump said he was still seeking a diplomatic agreement to end the conflict and that U.S. military aims would be completed “very shortly,” and he added Iran would be hit “extremely hard” in the coming weeks.

Many pundits were reportedly frustrated that Trump did not provide a clearer timeline for an exit.

Melissa Brown, managing director of investment decision research at SimCorp, said,  “I think investors are having knee-jerk reactions — they want the news to be good, but then think about it a little longer and decide perhaps the uncertainty is still too high, hence the high intraday volatility.”

Brown went on to note that when oil prices eventually return to normal, gas prices would take longer to do so, meaning there’s going to be a “continued inflationary impact on the economy.”

For his part, Dennis Kissler, senior vice president of trading at BOK Financial, said,  "The real question on traders' minds is that if Iran's oil infrastructure is possibly now at risk, and with more damage in the area now very likely, even if left intact the restart of oil flows in the region [is] now looking to be delayed further.”

In related oil news on Thursday, the Organization of the Petroleum Exporting Countries (OPEC) were reportedly expected to discuss raising production again following their April agreement to a 206,000 barrel per day (bpd) increase.

The decision may be made during a meeting this Sunday, but Consultancy Energy Aspects said the move was largely academic given that Iran still has control over the Strait of Hormuz.