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(Sharecast News) - Donald Trump said on Thursday that he would hit Iran "very hard" and take control of the country's vital oil hub, Kharg Island.
In a post on Truth Social, the US president said: "The United States will be hitting Iran (Whose Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most of its offensive capability, are GONE!), VERY HARD TONIGHT.
"At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America."
Oil prices shot up following the comments, but by 1422 BST, they were easing back again. Brent crude was flat at $93.13 a barrel and West Texas Intermediate was 0.3% higher at $90.27.
Neil Wilson, UK investor strategist at Saxo Markets, said: "Brent futures were initially a little slow to react to the post, bumping around on the $92 handle as traders tried to fathom the meaning of it all - but Brent futures have now motored higher, with the spike clearing $94 and holding gains around $93.60 as of send time.
"The main takeaway for the market is that the disjointed escalation that has been building this week could tilt towards a full ripping up of the ceasefire and return to full-blown hostilities...and remember that attacks on Iranian oil infrastructure would constitute a material escalation from the previous period of kinetic action.
"Kharg was talked about a lot but the US refrained from taking it that far - albeit we should not that he is not talking about taking the island tonight, but in the future...which sounds like another bargaining ploy more than anything.
"So, just the usual TACO? - we've been a ramping up of noise over the last week from the US administration and wonder quite what the plan is right now. It's increasingly clear he is running out of patience with Iran but has no appetite to restart the war proper, so we're left with these kinds of threats and ultimatums. Which is why the market response remains fairly orderly and Brent cannot lift above $100 on any headline."