Global oil prices climbed sharply on Monday as tensions in the Middle East intensified. The international benchmark Brent crude rose more than 3% to above $115 a barrel, while US West Texas Intermediate crude climbed to about $103.

Get today's headlines by email

The surge places Brent on course for its largest monthly gain on record. Oil had traded near $72 a barrel on 27 February, the day before US and Israeli strikes on Iran triggered the current conflict. Since then, the benchmark has repeatedly approached levels last seen in 2022.

Oil jumps on widening conflict

Energy markets reacted to fears that the war could disrupt major shipping routes. Iran has threatened attacks on vessels attempting to pass through the Strait of Hormuz, a narrow channel used for roughly one-fifth of global oil and gas supplies. Shipping through the route has slowed dramatically, pushing prices higher as traders factor in supply risks.

Asian stocks tumble

Stock markets across Asia opened sharply lower amid the spike in energy costs and rising geopolitical uncertainty.

Japan’s Nikkei 225 fell about 4.5% in early trading, while South Korea’s Kospi dropped roughly 4%. The declines reflected broader concerns that the conflict could weigh on economic growth by raising fuel prices and disrupting supply chains.

Investors have increasingly shifted toward safer assets as the war escalates and volatility spreads across commodity and financial markets. Analysts say the surge in oil prices has become a central driver of the market reaction.

War expands across region

The latest market shock followed signs that the conflict is widening beyond Iran and Israel. Iran-backed Houthi fighters in Yemen launched attacks on Israel over the weekend, adding another front to the crisis.

Iran has also threatened to expand retaliatory strikes, warning it could target universities and the homes of US and Israeli officials. Meanwhile, Washington has deployed thousands of additional troops to the Middle East as tensions intensify.

US President Donald Trump said in an interview that the United States could seize Iran’s key oil facilities, including the export hub at Kharg Island. He suggested the site could be taken easily and compared the potential move to Washington’s plans to control Venezuela’s oil industry indefinitely.

Iranian officials responded with warnings that their forces are prepared to confront US troops arriving in the region.

Fears for global energy supply

Energy analysts say the conflict threatens multiple chokepoints that are critical to global oil flows.

Beyond the Strait of Hormuz, there are concerns about the Bab al-Mandeb strait near Yemen. Any disruption there could affect another major share of the world’s oil shipments moving between the Red Sea and the Indian Ocean.

Market specialists warn prices could climb further if the fighting continues. Some analysts expect Brent crude to approach $130 a barrel in the coming weeks if threats to shipping routes persist.

Higher energy costs could also trigger wider economic effects. Analysts say rising fuel and food prices may squeeze consumers globally, raising the risk of a broader slowdown in economic activity.

Join the discussion?

Already a member?

Adapted by ASEAN Now. Source 30 March 2026

View full article

Think I'll stop smoking, that lighter fuel is getting costly!