Global oil prices surged above $100 a barrel for the first time since 2022 as escalating conflict involving the United States, Israel and Iran disrupted energy markets and raised fears of a prolonged supply crisis.
The sharp rise followed a weekend of intensified violence across the Middle East, including strikes on at least five energy facilities around Tehran, which heightened concerns about a major disruption to global oil supplies.
Brent crude, the international benchmark, climbed as high as $119.50 per barrel in early Asia-Pacific trading before easing to around $105 later in the day, while U.S. West Texas Intermediate crude rose to about $103.
Market volatility has been driven largely by the effective closure of the Strait of Hormuz, a critical maritime route through which roughly one-fifth of the world’s oil and liquefied natural gas shipments normally pass.
Energy infrastructure has also been affected elsewhere in the region, with Bahrain’s state oil company declaring force majeure after an Iranian strike set part of its refinery complex ablaze.
The surge in oil prices triggered a broad sell-off in global stock markets, with major European indexes including Germany’s DAX and France’s CAC 40 falling sharply, while Japan’s Nikkei 225 dropped 5%.
Leaders of the Group of Seven advanced economies are now expected to discuss the possible release of emergency petroleum reserves to stabilise prices and prevent a deeper global energy shock.
U.S. President Donald Trump described the price surge as a temporary consequence of military operations against Iran, saying markets would stabilise once security threats linked to Tehran’s nuclear programme were eliminated.
Iranian officials warned that continued attacks could push oil prices far higher, with some analysts and regional energy ministers suggesting crude could reach $150 per barrel if Gulf energy exports are further disrupted.
The crisis has prompted energy-dependent economies across Asia to introduce emergency measures, including fuel price controls in South Korea and electricity conservation steps in Bangladesh, as governments brace for a wider economic impact.