Crude oil prices have risen by as much as 20 percent, surpassing $100 a barrel, as the conflict between the United States, Israel, and Iran threatens global energy supplies.
The global benchmark, Brent crude, reached $111 a barrel on Sunday, marking the first time oil prices have exceeded $100 per barrel since Russia's 2022 invasion of Ukraine.
US President Donald Trump downplayed the surge, stating that short-term oil price increases are a small price to pay for global safety and peace.
Regional Impact
Iran has effectively halted shipping in the Strait of Hormuz, threatening about one-fifth of the global oil supply, while Iraq, the United Arab Emirates, and Kuwait have cut production due to the closure of the waterway.
Attacks on energy production facilities in the region have further threatened supplies, with Iran being blamed for multiple attacks across the Gulf, including in Qatar, Saudi Arabia, and Kuwait.
Escalating Tensions
On Saturday, Israel carried out air strikes targeting Iran's oil infrastructure for the first time since the start of the war, hitting four oil storage facilities and an oil production transfer centre in Tehran and the province of Alborz.
Iran's Revolutionary Guard Corps threatened to target energy facilities across the region in retaliation, warning that oil could soar to $200 a barrel if the US and Israel continue their actions.
Global Economic Fallout
Stocks in Asia fell sharply on Monday morning, with Japan's Nikkei 225 tumbling more than 7 percent and South Korea's KOSPI plunging more than 8 percent, as investors braced for the fallout of rising energy prices.
US stock futures also saw substantial losses, with futures tied to the S&P 500 down by 1.7 percent and those for the Nasdaq Composite falling by 1.90 percent.
According to Qatari Minister of Energy Saad al-Kaabi, all of the region's producers could soon be forced to halt production, and prices could hit $150 a barrel, as he warned that the situation could lead to a significant increase in inflation and a reduction in global economic growth.
Source: Al Jazeera
