Arabic version: أسعار النفط تتجاوز 100 دولار مع تصاعد النزاع في إيران
Oil prices have surged past $100 a barrel due to the ongoing conflict involving the United States and Israel against Iran. Brent crude, the global benchmark, rose by as much as 20 percent on Sunday, topping $111 a barrel, as trades grew of prolonged disruption to global energy supplies, according to Al Jazeera.
This marks the first time oil has surpassed $100 per barrel since Russia’s invasion of Ukraine in 2022. U.S. President Donald Trump, addressing the price surge, brushed off the issue, stating it was a very small price to pay for U.S.A., and World, Safety and Peace. He asserted that prices would drop rapidly once the destruction of the Iran nuclear threat is over.
U.S. Energy Secretary Chris Wright also downplayed the prospect of rising energy prices, stating that any increases in gasoline prices would be temporary. The rise in crude oil prices has been approximately 50 percent since the U.S. and Israel launched joint strikes on Iran on February 28.
In retaliation, Iran has effectively halted shipping in the Strait of Hormuz, a critical channel for global oil transport, threatening about one-fifth of the world’s oil supply. This disruption has led to production cuts from major OPEC producers, including Iraq, the United Arab Emirates, and Kuwait, as they face accumulation of unsold barrels due to the blockade.
The situation has been exacerbated by missile and drone strikes attributed to Iran on energy facilities across the Gulf, impacting nations like Qatar, Saudi Arabia, and Kuwait. Additionally, Israel has conducted air strikes targeting Iranian oil facilities, marking a significant escalation in the conflict.
As a result of these developments, Asian stock markets reacted sharply, with Japan’s Nikkei 225 tumbling about 7 percent and South Korea’s KOSPI plunging nearly 8 percent in early trading on Monday. U.S. stock futures also showed substantial losses, indicating investor anxiety over the potential for sustained higher energy prices and their impact on inflation and economic growth.
