Global oil prices jumped above $100 per barrel in early Asian trading on Monday as tensions in the Middle East intensified following the escalating conflict involving Iran, the United States, and Israel.
West Texas Intermediate crude rose to $108.66, gaining $17.76 or about 19.5%, while Brent crude climbed to $108.69, up $16.00 or roughly 17.3%.
The surge followed a sharp escalation in hostilities over the weekend, including attacks on energy infrastructure and military targets across the region. Israeli strikes reportedly hit major fuel storage facilities near Tehran, while Iran launched drone and missile attacks in response.
A drone strike damaged a desalination plant in Bahrain, missile attacks injured several people in central Israel, and a U.S. service member was reported killed following an Iranian counterattack in Saudi Arabia.
Meanwhile, Iran’s Assembly of Experts appointed Mojtaba Khamenei as the country’s new supreme leader after the death of his father, Ali Khamenei. The leadership transition is widely seen as maintaining Iran’s existing hardline political direction.
Financial markets also reacted negatively to the developments, with futures linked to major U.S. stock indexes declining as investors responded to rising energy prices and geopolitical risk.
Analysts say fears of prolonged supply disruptions, including possible threats to energy infrastructure and tanker routes in the Gulf region, are pushing oil prices higher.
The surge in crude prices has also strengthened the U.S. dollar and raised concerns about a potential wave of energy-driven inflation, particularly for countries heavily dependent on imported oil.
