Oil prices jump above $116 amid Iran war tensions

Global oil prices climbed sharply on Monday, with Brent crude crossing $116 per barrel amid escalating tensions surrounding the ongoing US-Israel war on Iran and fears of further disruption to energy supplies.

Market data showed that Brent crude, the international benchmark, rose by more than 3 per cent in early trading, reaching its highest level in nearly two weeks. The price surge follows heightened geopolitical tensions and warnings from Iran over a possible US ground invasion.

Iranian officials signalled readiness for further escalation, with senior leaders issuing strong warnings against any military move by the United States. The situation intensified over the weekend as Iran-backed Houthi forces reportedly launched missiles at Israel, while Israeli operations expanded in southern Lebanon.

The conflict has significantly impacted global energy markets, particularly after Iran effectively restricted traffic through the Strait of Hormuz, a key route for global oil and liquefied natural gas shipments. Around 20 per cent of the world’s oil supply is transported through the strait, and disruptions have triggered what analysts describe as one of the most severe energy shocks in recent decades.

Oil prices have risen nearly 60 per cent since the conflict began, prompting concerns over rising fuel costs worldwide. Several countries have already taken measures to conserve energy in response to the situation.

The impact has also been felt in financial markets, with major Asian stock indices such as Japan’s Nikkei 225 and South Korea’s KOSPI falling by over 4 per cent.

Analysts warn that oil prices may continue to rise unless maritime traffic in the Strait of Hormuz returns to normal. Meanwhile, diplomatic efforts are ongoing, with Pakistan reportedly mediating indirect talks between the parties, although Iran has rejected recent proposals put forward by the United States.

Experts say the full economic impact of the disruption is yet to be realised, as supply shortages are expected to become more pronounced in the coming weeks.