Crude oil prices have surged above $100 per barrel for the first time since the Russia-Ukraine war began in 2022, driven by escalating conflict in West Asia and fears of prolonged supply disruptions following Iran’s closure of the Strait of Hormuz.
Brent Crude, the global benchmark, jumped more than 20 per cent on Sunday, briefly crossing $111 per barrel as market panic intensified over the critical chokepoint’s blockade.
After some correction, Brent was trading around $107.50 on Monday.
US President Donald Trump addressed the spike in a Truth Social post, “Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, are a very small price to pay for the USA and World, Safety and Peace.”
He added, “Only fools would think differently!" US Secretary of Energy Chris Wright also downplayed the impact on consumers, stating that any rise in petrol and gas prices at the pump would be “temporary”.
Since the outbreak of the Iran war, crude prices have risen more than 50 per cent in just ten days. Analysts warn that further escalation could push prices even higher.
Several major oil-producing nations — including Iraq, the United Arab Emirates, and Kuwait — have already reduced output due to accumulating storage backlogs and security concerns.
Attacks on energy infrastructure across the region have deepened the crisis and heightened fears in international trade markets.
On Sunday, Iran’s Islamic Revolutionary Guard Corps (IRGC) issued a stark warning, threatening to target energy facilities throughout the region in retaliation.
The IRGC stated that if the United States and Israel “continue this game”, oil prices could soar to $200 per barrel.
Also read: Crude oil hits $92.70, jumps 30 pc amid Mid-East war
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