Global oil prices have jumped above $100 a barrel for the first time since 2022, according to reports from BBC and other news outlets.
The escalation of the US-Israeli war with Iran has fueled fears of prolonged disruption to shipments through the Strait of Hormuz. Iran named Mojtaba Khamenei as the new Supreme Leader on Sunday, succeeding his father Ali Khamenei.
The US and Israel launched fresh airstrikes across Iran over the weekend, targeting multiple sites including oil depots. This has led to a significant increase in oil prices, with Brent crude rising by around 15.5% to $107.16 and Nymex light sweet up by over 17% to $106.77 on Monday.
Market Reaction
Stock markets in the Asia-Pacific region have fallen sharply, with Japan's Nikkei 225 index down by more than 5% and the ASX 200 in Australia over 3.5% lower. Many market analysts had predicted that oil prices would reach the $100 mark this week.
The rapid increase in oil prices is likely to further raise petrol prices and those of derivative products such as jet fuel and fertilizers. The physical supplies from the Gulf are mainly consumed in Asia, and there are already signs that Asian consumers are bidding up prices for US gas.
Official Response
US President Donald Trump stated that short-term price rises are a "small price to pay" for removing Iran's nuclear threat. His energy secretary said that Israel, not the US, is targeting Iran's energy infrastructure, amid concerns about rising domestic pump prices caused by the war.
Foreign Secretary Yvette Cooper has responded to President Trump's criticism of the UK's response to the conflict in Iran. Isaac Herzog said that Israel is acting out of "self-defence" on behalf of Israel, the wider region, and Europe.
