Global oil prices jumped above $100 per barrel as the ongoing conflict between the United States, Israel and Iran threatened major disruptions to energy supplies across the Middle East.

The international benchmark Brent crude oil surged more than 20 percent on Sunday, briefly reaching about $114 per barrel before easing to around $107.50 early Monday. The spike marks the first time oil has crossed the $100 mark since the Russian invasion of Ukraine.

The sharp rise follows escalating military strikes that began on February 28 and Iran’s retaliation by effectively halting shipping through the Strait of Hormuz, a crucial route that carries roughly one-fifth of the world’s oil supply.

According to Al Jazeera, several major producers including Iraq, the United Arab Emirates, and Kuwait have reduced production as tankers remain stranded due to the disruption of shipping through the strait.

Donald Trump dismissed concerns over the surge, saying higher oil prices would be temporary and a “small price to pay” for eliminating Iran’s nuclear threat. Meanwhile, the Islamic Revolutionary Guard Corps warned that continued attacks could push oil prices as high as $200 per barrel.

The conflict has also rattled global financial markets. Japan’s Nikkei 225 and South Korea’s KOSPI both plunged sharply in early trading on Monday, while Hong Kong’s Hang Seng Index recorded significant losses as investors feared prolonged economic fallout.

Economists warn that sustained high oil prices could fuel inflation and slow global economic growth if the conflict continues for weeks.

BOB Post