Global oil prices spiked and financial markets wobbled after Donald Trump suggested that the United States could potentially seize Iran’s oil resources, escalating fears of a wider conflict in the Middle East.
In early Monday trading, Brent crude, the international benchmark, climbed to around $116 per barrel, up roughly 2% following Trump’s weekend interview in which he described taking control of Iran’s oil, including the critical export terminal at Kharg Island, as a possible course of action.
Asian markets reacted sharply to the remarks, with Japan’s Nikkei index tumbling about 3%, South Korea’s Kospi shedding 3.4%, and Hong Kong’s Hang Seng recording losses. European markets opened mostly lower, though the UK’s FTSE 100 managed modest gains, buoyed by mining stocks.
Energy prices also rose amid mounting fears of supply disruptions from the Gulf region. European natural gas prices jumped as uncertainty over the stability of global energy supplies intensified, reflecting the escalating crisis in the Middle East.
Tensions in the region have been heightened by the deployment of additional US troops and reports of ballistic missile attacks by Yemen’s Houthi rebels targeting Israel. Analysts warn that continued escalation could push Brent crude toward $150 per barrel, with some forecasts even suggesting prices could hit $200 per barrel if the situation worsens.
While higher oil prices could squeeze global economies and dampen demand, the market is already pricing in the risk of disruptions to key shipping routes, particularly the Strait of Hormuz, a critical corridor for global energy supplies. Brent crude is now positioned to record its largest monthly gain on record, reflecting heightened concerns over potential supply constraints.
World leaders and energy executives are holding emergency consultations to explore measures to stabilize markets and mitigate the economic impact of rising fuel costs caused by the crisis.
ELIJAH ADEYEMI
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