Oil Prices Surge Past $110 as Iran Conflict Sparks Global Market Jitters
Global oil markets surged sharply on Monday as escalating military tensions involving the United States, Israel, and Iran raised concerns about disruptions to one of the world’s most critical energy routes — the Strait of Hormuz.
Benchmark Brent Crude climbed nearly 24% in early Asian trading to around $114 per barrel, while West Texas Intermediate crude also surged past $114. The sharp rise followed fresh airstrikes over the weekend targeting several sites inside Iran, including energy infrastructure.
At the same time, Tehran signaled a continued hardline stance after naming Mojtaba Khamenei as successor to Supreme Leader Ali Khamenei, a move analysts say suggests the conflict may not end soon.
Financial markets across Asia reacted negatively to the rising geopolitical risk. Japan’s Nikkei 225 dropped more than 7%, while Hong Kong’s Hang Seng Index and Australia’s ASX 200 also recorded significant losses.
South Korea’s KOSPI index fell sharply, triggering a temporary trading halt aimed at preventing panic selling.
The biggest concern for energy markets remains the disruption to shipping through the Strait of Hormuz, a narrow channel responsible for transporting nearly one-fifth of global oil supplies. Tanker traffic has slowed dramatically since the conflict began.
Analysts warn that if the disruption continues for several weeks, oil prices could climb even higher, with some forecasts suggesting prices may approach $150 per barrel.
