Daijiworld Media Network – New Delhi
New Delhi, Mar 9: Global oil prices surged sharply while stock markets across Asia tumbled on Monday as the escalating conflict involving the United States, Israel and Iran raised fears of prolonged disruption to energy shipments through the strategic Strait of Hormuz.
Brent crude jumped nearly 24 percent to around $114.74 per barrel during early Asian trading, while Nymex light sweet crude climbed more than 26 percent to $114.78, reflecting growing concerns over global supply disruptions.
The sharp rise in oil prices followed fresh waves of airstrikes by the US and Israel over the weekend targeting multiple locations in Iran, including oil depots and energy infrastructure. The escalation has intensified fears that supplies from the Gulf region could be severely affected.
Adding to geopolitical tensions, Iran on Sunday named Mojtaba Khamenei as the successor to Supreme Leader Ali Khamenei, signalling that hardline leadership remains firmly in control amid the ongoing conflict.
Stock markets across the Asia-Pacific region reacted sharply to the developments. Japan’s Nikkei 225 dropped more than 7 percent, while Hong Kong’s Hang Seng Index fell over 3 percent. Australia’s S&P/ASX 200 declined by more than 4 percent in early trading.
South Korea’s KOSPI Index was among the worst affected, plunging more than 8 percent and triggering a temporary 20-minute trading halt under the exchange’s circuit breaker mechanism designed to curb panic selling. The same safeguard was activated last week after the index fell nearly 12 percent.
About one-fifth of the world’s oil supply typically passes through the Strait of Hormuz, a critical shipping route linking the Gulf with global markets. However, maritime traffic through the narrow passage has slowed dramatically since the conflict erupted a week ago, raising concerns about a prolonged supply shock.
Market analysts warn that if the disruption continues through March, oil prices could climb beyond $150 per barrel. Adnan Mazarei of the Peterson Institute for International Economics said the surge in prices was expected as production has already been disrupted in parts of the Gulf and the conflict appears unlikely to end quickly.
Rising crude prices are also expected to increase the cost of derivative products such as jet fuel and key chemical inputs used in fertiliser production, potentially impacting global industries and consumer prices.
The Gulf region primarily supplies energy to Asian markets, and reports indicate that some liquefied natural gas tankers originally headed for Europe have already changed course toward Asia as buyers scramble for supplies.
Meanwhile, US President Donald Trump said the short-term spike in energy prices was a “small price to pay” for eliminating Iran’s nuclear threat. His administration has also indicated that Israel, rather than the United States, is primarily responsible for targeting Iran’s energy infrastructure amid concerns about rising fuel prices in the US.