Brent crude, the international benchmark for oil prices, jumped more than 20 percent on Sunday, briefly climbing above $114 a barrel as fears grew that the conflict could cause prolonged disruptions to global energy supplies
Oil prices have surged past $100 a barrel amid the fallout from the United States and Israel’s war with Iran.
Brent crude, the international benchmark for oil prices, jumped more than 20 percent on Sunday, briefly climbing above $114 a barrel as fears grew that the conflict could cause prolonged disruptions to global energy supplies.
After easing slightly, the benchmark was trading around $107.50 as of 02:30 GMT on Monday.
The surge marks the first time oil has exceeded $100 per barrel since Russia’s invasion of Ukraine.
Donald Trump, who focused heavily on cost-of-living issues during the 2024 election campaign, played down the spike in prices.
“Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, are a very small price to pay for U.S.A. and world safety and peace,” Trump said in a post on Truth Social.
Chris Wright also minimized concerns about rising fuel costs earlier on Sunday, telling the Face the Nation that any increase in petrol prices would likely be “temporary.”
Crude oil prices have risen by roughly 50 percent since the United States and Israel launched joint strikes on Iran on February 28.
Iran has effectively halted shipping through the Strait of Hormuz in retaliation, putting nearly one-fifth of the world’s oil supply at risk.
Meanwhile, Iraq, United Arab Emirates, and Kuwait—three major producers in the Organization of the Petroleum Exporting Countries—have cut production as oil shipments pile up due to the disruption of traffic through the waterway.
Attacks on energy infrastructure across the region have further threatened supplies. Iran has been blamed for several strikes on energy facilities in Gulf countries, including Qatar, Saudi Arabia, and Kuwait.
On Saturday, Israel carried out air strikes on Iran’s oil infrastructure for the first time since the war began.
According to Iranian state media, the attacks targeted four oil storage facilities and an oil transfer centre in Tehran and the nearby province of Alborz.
The Islamic Revolutionary Guard Corps (IRGC) warned on Sunday that it could target energy facilities across the region in retaliation, saying oil prices could climb to $200 a barrel if the United States and Israel “continue this game.”
Financial markets reacted sharply to the rising tensions. Stocks across Asia dropped on Monday morning as investors braced for the economic impact of higher energy prices.
Japan’s Nikkei 225 fell more than 7 percent in early trading, while South Korea’s KOSPI dropped more than 8 percent. In Hong Kong, the Hang Seng Index declined by nearly 3 percent.
US stock futures also pointed lower. Futures linked to the S&P 500 fell by about 1.7 percent, while those tied to the Nasdaq Composite dropped around 1.9 percent.
Although Trump administration officials say the war could end within weeks, analysts warn that prolonged disruptions to global energy supplies could push inflation higher and slow economic growth.
The International Monetary Fund estimates that every sustained 10 percent increase in oil prices leads to a 0.4 percent rise in inflation and reduces global economic growth by about 0.15 percent.
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