Global energy markets have been thrown into turmoil as the escalating conflict in the Middle East pushes oil prices close to $120 per barrel, triggering sharp declines in major stock markets worldwide.
According to international media reports, the Gulf region has turned increasingly volatile amid the Iran war, while the strategic Strait of Hormuz has effectively been closed, severely disrupting global energy supplies.
Reports indicate that crude oil prices surged rapidly after Asian markets opened on Monday. Prices initially crossed $100 per barrel early in the morning and continued to rise throughout the day, reflecting fears long anticipated by analysts.
Data cited by several outlets show that Brent crude jumped about 22 percent to around $115 per barrel, while West Texas Intermediate (WTI) rose by a similar margin to $113.40. Meanwhile, Murban crude briefly climbed to around $120 per barrel.
According to the Associated Press, Brent crude reached $119.50 per barrel in early trading before easing to about $112.98, while U.S. benchmark WTI crude rose to $119.48 before falling back to around $110.17 later in the session.
The surge comes as military strikes by the United States and Israel on Iranian targets intensified over the weekend, including attacks on oil depots and energy infrastructure. Analysts warn that if the conflict continues, disruptions to shipping through the Strait of Hormuz—one of the world’s most vital oil transit routes—could persist for an extended period, worsening the global supply crisis.
Meanwhile, Iran announced on Sunday that Mojtaba Khamenei, son of Supreme Leader Ayatollah Ali Khamenei, would succeed him as the country’s top religious authority—an indication that Tehran’s power structure remains firmly under the control of the supreme leader’s loyalists.
The sharp rise in oil prices has also rattled global equity markets. Across the Asia-Pacific region, stock indices suffered heavy losses. Japan’s Nikkei 225 dropped more than 7 percent, Hong Kong’s Hang Seng fell over 3 percent, and Australia’s ASX 200 declined by more than 4 percent.
South Korea’s KOSPI index recorded the steepest fall, plunging by over 8 percent as investors rushed to sell shares amid growing uncertainty. Trading on the exchange was temporarily halted for 20 minutes under a circuit breaker mechanism to prevent panic selling.
The International Monetary Fund (IMF) has warned that every 10 percent rise in oil prices could increase global inflation by 0.4 percent, while reducing global economic growth by around 0.15 percent.
Energy analysts also note that the closure of the Strait of Hormuz has stranded large volumes of crude oil shipments. As a result, major OPEC producers such as Iraq, the United Arab Emirates, and Kuwait have reportedly reduced oil production, further tightening supply.
Economists warn that prolonged disruption in Middle Eastern energy exports could have significant consequences for consumers, businesses, and the global economy.
Sources: AP, Al Jazeera, BBC, The Jerusalem Post, TASS, The Globe and Mail, OilPrice.com.