Oil prices climbed to their highest level in nearly two weeks as the US‑Israel war on Iran intensified across multiple fronts.
Brent crude, the global benchmark, jumped more than 3 percent on Monday morning, surpassing $116 a barrel, reports Al Jazeera.
The rally pushed prices to their strongest point since 19 March, when they briefly touched $119. The surge followed Iran’s declaration that it was ready for a US ground assault, with the parliament speaker warning that Tehran was prepared to “set them on fire” and punish America’s regional allies once troops arrived.
The weekend saw a sharp escalation, with Iranian‑backed Houthis firing missiles at Israel for the first time in the conflict, while Israel expanded its offensive into southern Lebanon.
Asian markets reacted sharply, with Japan’s Nikkei 225 and South Korea’s KOSPI both plunging more than 4 percent by 1:30 GMT.
Iran’s closure of the Strait of Hormuz in response to US‑Israeli strikes has disrupted about 20 percent of global oil and LNG shipments, triggering the most severe energy crisis in decades.
Oil prices have surged nearly 60 percent since the war began, driving fuel costs higher worldwide and forcing governments to adopt emergency conservation measures. Analysts warn prices will continue rising unless shipping through the strait resumes.
US President Donald Trump has threatened to “obliterate” Iran’s energy facilities if Tehran does not reopen the waterway by 6 April. He extended the deadline by 10 days last Thursday and unveiled a 15‑point plan to end the war, expressing optimism about indirect talks mediated by Pakistan.
“I do see a deal in Iran, yeah,” Trump told reporters late Sunday aboard Air Force One. “Could be soon,” he said.
Tehran has rejected Trump’s proposal, instead demanding war reparations and recognition of its control over the strait as conditions for a ceasefire.
Greg Newman, CEO of Onyx Capital Group, said consumers were only beginning to feel the full impact of the turmoil.
“Physical oil moves in loading cycles, and Europe has taken about three weeks to really feel the shortage,” he told Al Jazeera. “Brent is starting to reflect reality, and we expect a steady climb toward $120 and beyond.”
Newman added that the scale of disruption was unprecedented, “No one in the market has ever seen outages like this—physical premiums are at record highs. There’s still a sense the wider world isn’t taking this seriously enough, but it’s worse than anything before.”
