Oil surges above $115 as Middle East conflict rattles Asian markets
Oil prices climbed sharply and Asian stock markets fell on Monday as the escalating Middle East conflict raised fears of prolonged disruption to global energy supplies, Qazinform News Agency correspondent reports.
Benchmark Brent crude rose to around $115 per barrel, while U.S. West Texas Intermediate traded above $101, extending a rally driven by concerns over shipping through the Strait of Hormuz, a critical route for global oil and gas flows.
Asian equities declined amid the surge in energy prices and growing uncertainty about the conflict. Japan’s Nikkei 225 dropped about 4.5% in morning trading to 50,939, while South Korea’s Kospi fell more than 3%. Hong Kong’s Hang Seng and Australia’s S&P/ASX 200 also posted losses.
Investor sentiment has been shaken by fears that the conflict could expand further after Yemen’s Houthi rebels said they had launched cruise missiles and drones toward Israel over the weekend, raising the risk of disruptions in both the Persian Gulf and the Red Sea shipping corridors.
The Strait of Hormuz normally carries roughly one-fifth of the world’s oil and gas shipments. Any sustained disruption to traffic through the waterway could significantly tighten global energy supplies.
Earlier, Qazinform News Agency reported that Iran granted safe passage to 20 Pakistani vessels in the Strait of Hormuz.
