Global oil prices climbed above $100 per barrel on Monday while most Asian stock markets fell, as the war involving Iran, the United States, and Israel entered its third week with no sign of easing.
Crude prices surged in early trading after U.S. President Donald Trump said American forces had struck military targets on Kharg Island, Iran’s main oil export hub located in the Persian Gulf.
Trump warned that strikes could expand to Iran’s energy infrastructure if Tehran interferes with shipping through the Strait of Hormuz, a strategic waterway through which roughly one-fifth of the world’s oil supply passes.
However, Iran’s Fars News Agency reported that the strikes did not damage the island’s oil facilities.
Trump has called on several nations including China, France, Japan, South Korea, and the United Kingdom to deploy naval forces to help secure the Strait of Hormuz.
“This should have always been a team effort, and now it will be,” Trump wrote on social media.
However, Japan said it was not currently considering maritime security operations, while Australia announced it would not send naval ships to the region.
Iran’s Foreign Minister Abbas Araghchi said Tehran is not interested in negotiating with US.
“We don’t see any reason why we should talk with Americans, because we were talking with them when they decided to attack us,” Araghchi said during an interview with CBS News.
He added that Iran has not requested a ceasefire or negotiations, though it is willing to discuss safe passage for ships with other countries.
Fighting continued across the region on Monday. Saudi Arabia said it intercepted more than 60 drones overnight, while flights at Dubai International Airport were temporarily suspended following a drone-related incident that caused a nearby fire.
Meanwhile, Iranian officials condemned Israeli strikes on fuel depots in Tehran, describing them as environmental destruction due to the potential long-term health risks.
The ongoing conflict has pushed global energy prices higher. Brent Crude rose nearly 3% to around $106.50 before easing to about $104, while West Texas Intermediate climbed above $100 per barrel.
In response, the International Energy Agency said member countries have agreed to release a record 400 million barrels of oil from strategic reserves to help stabilise markets.
Japan has already begun releasing oil from its national reserves as part of the coordinated effort to cushion the global energy shock caused by the escalating war.
