Global oil prices have risen sharply, while stock markets in Asia have suffered a sharp decline this Monday, March 30, at a time when the conflict in the Middle East has entered its fifth week.
Brent crude rose more than 3%, topping $115 a barrel. Meanwhile, US crude (WTI) reached around $103, up about 3.5%. This development puts Brent on course for its biggest monthly gain in history.
Asian markets reacted negatively to the situation. Japan's Nikkei 225 index fell 4.5%, while South Korea's Kospi fell 4%.
Tensions rose further over the weekend after Iran-backed Houthi rebels in Yemen struck Israel. Meanwhile, Iran warned of expanding retaliatory attacks, including against US and Israeli targets.
US President Donald Trump said his country could take control of Iran's oil, mentioning the possibility of capturing the key energy hub on Kharg Island. He added that Iranian defenses in the area are weak and could be easily defeated.
At the same time, Iran has threatened to attack ships passing through the Strait of Hormuz, a strategic route through which about 20% of global oil and gas supplies pass. This has caused severe fluctuations in energy markets and has directly affected the rise in prices.
Experts warn that if the conflict escalates further, oil prices could rise even further, reaching as high as $130 per barrel in the coming weeks.
The increase in energy costs is also expected to have a direct impact on the global economy, with the risk of an economic slowdown, as consumers face higher prices for fuel and food.
For comparison, on February 27, before the attacks on Iran were launched, the price of Brent oil was around $72 per barrel. While on March 18 it reached $119.50, the highest level since June 2022.
