Global financial markets declined while oil prices surged after US president Donald Trump suggested the United States could take control of Iran’s oil resources, escalating concerns about tensions in the Middle East.
Brent crude, the international benchmark for oil, rose to about $116 per barrel in early Monday trading, gaining roughly 2% after Trump’s remarks during a weekend interview in which he said seizing Iran’s oil including the key export terminal at Kharg Island remained a possible option.
Anxiety quickly spread across Asian markets, with Japan’s Nikkei index falling around 3%, South Korea’s Kospi dropping 3.4%, and Hong Kong’s Hang Seng index also recording losses. European markets opened slightly lower, although the UK’s FTSE 100 posted modest gains supported by mining stocks.
Energy prices also reacted to fears of supply disruptions from the Gulf region. European natural gas prices increased amid growing uncertainty over the stability of global energy supplies as the Middle East conflict intensifies.
Tensions have risen further following the deployment of additional US troops to the region and reports that Yemen’s Houthi rebels launched ballistic missiles toward Israeli targets, raising concerns about a broader regional conflict.
Analysts warn that continued escalation could drive oil prices significantly higher, with some projections suggesting crude could climb toward $150 per barrel if the crisis persists. However, such price increases could weaken global demand and heighten the risk of an economic slowdown.
Brent crude is now on course for its largest monthly gain on record, reflecting mounting fears that disruptions to key shipping routes, particularly the Strait of Hormuz, could tighten global energy supplies.
World leaders and energy industry executives are meanwhile holding emergency discussions on measures to cushion economies against potential shortages and rising fuel costs caused by the crisis.
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