Global oil prices surged and stock markets experienced a sharp decline in Asian trading on Monday morning, fueled by escalating tensions between the U.S., Israel, and Iran.
Brent crude oil prices rose by over 3%, surpassing $115 per barrel, while U.S. crude climbed roughly 3.5% to $103. Brent is now poised for its most significant monthly gain on record.
Asian stock markets opened with losses, with Japan’s Nikkei 225 index falling by 4.5% and South Korea’s Kospi dropping 4%.
This market reaction follows Houthi rebels in Yemen, backed by Iran, joining the conflict with attacks on Israel over the weekend. Iran also threatened expanded retaliatory strikes targeting U.S. and Israeli officials’ residences and universities.
In a Financial Times interview published Sunday, U.S. President Donald Trump stated he could “take the oil in Iran” and potentially seize its major fuel hub on Kharg Island.
When questioned about potential Iranian defenses on the island, Trump responded, “I don’t think they have any defense. We could take it very easily.”
Trump likened this potential action to the situation in Venezuela, where the U.S. intends to control the oil industry “indefinitely” following the seizure of then-President Nicolás Maduro in January.
Over the weekend, Iran’s parliamentary speaker also warned that Iranian forces were “waiting for American soldiers,” coinciding with the arrival of an additional 3,500 U.S. troops in the Middle East.
Global energy markets have experienced significant volatility after Tehran responded to U.S. and Israeli strikes by threatening attacks on ships transiting the Strait of Hormuz.
Oil and gas shipments through this crucial global energy waterway have largely halted, driving up prices for both commodities.
Brent crude was priced at approximately $72 per barrel on February 27, the day before the U.S. and Israel initiated strikes against Iran.
On March 18, the benchmark oil contract reached $119.50, marking its highest level since June 2022.
U.S. Central Command has yet to release a public statement regarding the matter.
U.S. officials have not confirmed the potential deployment of ground troops in the conflict, which would represent a significant escalation.
Victoria and Tasmania are incentivizing commuters to avoid driving as the conflict in Iran drives up petrol prices.
Reports indicate that a number of individuals sustained injuries following attacks on aluminum facilities in the UAE and Bahrain.
After a month of conflict, the BBC’s international editor writes that Trump’s instinctive approach has proven ineffective.