US-Israel Iran War: Global financial markets reeled on Monday as intensifying military strikes by the United States and Israel on Iran triggered fears of a major disruption to global energy supplies. Oil prices spiked sharply, equity markets stumbled, and investors rushed toward safe-haven assets, underscoring how fragile the global economy remains in the face of geopolitical shocks.
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Benchmark Brent Crude jumped as much as 13 percent in early trading, briefly touching $82 per barrel, its highest level in 14 months. Though prices later cooled slightly, Brent remained up roughly 7 percent, trading above $77 per barrel during European hours.
The surge was driven by mounting fears that Iran could effectively close or severely disrupt shipping through the Strait of Hormuz, one of the world’s most vital maritime arteries. Nearly 20 percent of global oil supplies and a significant share of liquefied natural gas shipments pass through the narrow waterway linking the Persian Gulf to international markets.
Within hours of the weekend’s coordinated US-Israeli strikes, Tehran reportedly warned oil tankers that no ship would be permitted safe passage through the strait. Even the possibility of such disruption was enough to ignite panic in energy markets, as traders factored in the risk of supply shortages.
Energy analysts warn that a sustained blockade or prolonged disruption could send crude prices soaring well past $100 per barrel, reviving inflationary pressures globally.
Stock Markets Under Pressure
Equity markets across Asia reacted swiftly to the escalating conflict. In Japan, the Nikkei 225 fell nearly 2.4 percent at the open before trimming losses to trade down about 1.5 percent.
Australia’s ASX 200 opened sharply lower, reflecting investor anxiety, though it later recovered to close flat. In China, the CSI 300 initially dropped 0.6 percent before rebounding modestly into positive territory.
