Global oil prices have jumped above 110 dollars per barrel while stock markets across Asia have fallen sharply amid growing fears that the escalating conflict involving the United States, Israel, and Iran could disrupt global energy supplies.
The spike in prices follows intensified airstrikes by the United States and Israel on targets inside Iran over the weekend, including oil depots and energy infrastructure.
Amid the escalating conflict, Iran has named Mojtaba Khamenei as successor to his father Ali Khamenei, signalling that the country’s hardline leadership remains firmly in control.
The conflict has raised serious concerns about the safety of shipping through the Strait of Hormuz, a narrow passage through which roughly one-fifth of the world’s oil supply normally travels.
With tanker traffic through the route now largely halted, markets reacted sharply on Monday. Brent crude rose nearly 24 percent to about 114 dollars per barrel, while Nymex light sweet crude surged more than 26 percent to similar levels.
The sharp increase in oil prices triggered heavy losses on stock markets across the Asia-Pacific region. Japan’s Nikkei 225 fell more than seven percent, while Hong Kong’s Hang Seng Index dropped over three percent.
Australia’s S&P/ASX 200 declined by more than four percent, while South Korea’s Kospi plunged over eight percent, triggering a temporary trading halt designed to prevent panic selling.
Analysts warn that prolonged disruption in the Strait of Hormuz could drive oil prices even higher. Some market experts say prices could exceed 150 dollars per barrel if the shutdown continues for several weeks.
Economists say the surge in oil prices could soon lead to higher costs for consumers and businesses worldwide, particularly through rising fuel prices and increased costs for products such as jet fuel and fertilisers.
Energy supplies from the Gulf region are mainly consumed in Asia, and early signs already show Asian buyers turning to alternative sources such as the United States for natural gas as the crisis continues to unfold.
Source: Wesleyannews.com
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