Global oil prices surged sharply after US President Donald Trump signalled that military operations against Iran would continue, raising fears of prolonged disruption to energy supplies.
Brent crude rose by more than $6, reaching around $107 per barrel, while US West Texas Intermediate climbed above $105. The spike came after earlier declines, as markets reacted quickly to the president’s televised address.
The renewed gains reflect growing concern among investors that the conflict could continue to impact global oil flows for weeks.
Strait of Hormuz Disruption Fuels Crisis
Tensions have intensified following Iran’s reported closure of the Strait of Hormuz, a critical route for global energy shipments. The move has disrupted roughly one-fifth of the world’s oil and liquefied natural gas supplies, triggering what analysts describe as one of the most serious energy shocks in decades.
In his remarks, Trump said US forces were close to achieving their objectives, suggesting the conflict could end within weeks, though he did not provide a clear timeline.
Asian Markets Fall on Rising Energy Costs
Stock markets across Asia declined as investors reacted to the rising cost of energy. Many countries in Southeast Asia depend heavily on imported oil, making them particularly vulnerable to price spikes.
A key regional index tracking emerging Asian markets fell more than 2%, while currencies across the region weakened slightly.
In South Korea, the KOSPI dropped sharply after initial gains earlier in the day. President Lee Jae-myung called for urgent approval of a multibillion-dollar budget to stabilise the economy amid what he described as a severe energy security threat.
Markets in Singapore, Malaysia, Indonesia, and Taiwan also recorded losses, while shares in mainland China and Hong Kong edged lower.
Technology stocks in Hong Kong were among the hardest hit, reflecting broader investor caution.
Uncertainty Continues to Weigh on Markets
Earlier signs of possible de-escalation had briefly lifted global markets. Reports indicated that Iran had attempted to communicate directly with the US, suggesting it was acting in self-defence and seeking to ease tensions.
However, Trump’s latest comments have renewed uncertainty, prompting fresh volatility across financial markets.
Analysts say that while markets are currently under pressure, any clear resolution to the conflict could trigger a rapid rebound in both stocks and investor confidence.