Oil Prices Surge Past $116 Amid Iran-US Tensions; Asian Markets Slump

Global energy markets were thrown into fresh turmoil Monday as oil prices surged past $116 per barrel. The spike follows escalating military tensions between Iran and the United States, alongside reports of a potential ground operation, which have triggered a sharp sell-off in major Asian stock markets.

On Monday morning, Brent crude rose more than 3 percent, hitting its highest level since March 19. The rally is driven by fears of a total shutdown of the Strait of Hormuz, a critical maritime artery through which approximately 20 percent of the world’s oil and liquefied natural gas (LNG) passes.

Shipping traffic through the Strait has nearly collapsed. While roughly 120 ships typically transit the route daily, only a few are currently passing. Although Tehran has allowed a limited number of vessels—including those from Pakistan and Malaysia—to proceed, analysts warn that prices will remain volatile until full shipping operations resume.

The crisis intensified following reports that the U.S. Pentagon is preparing for potential ground operations. Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned that Tehran is ready to repel any U.S. assault, accusing Washington of planning an invasion.

Houthi Involvement Iran-backed Houthi rebels launched their first missile attack toward Israel over the weekend. Lebanon Conflict Israel’s military campaign against Hezbollah in Lebanon continues to expand. U.S. Ultimatum President Donald Trump has threatened to target Iran’s energy infrastructure if control of the waterway is not relinquished by April 6.

While President Trump suggested a 15-point peace framework mediated by Pakistan, Iran has largely dismissed the proposal. Tehran maintains that any ceasefire must include U.S. recognition of Iranian territorial control and the payment of war reparations.

The impact of the shortage is beginning to ripple through the global economy, forcing several nations to implement emergency energy-saving measures. Greg Newman, CEO of Onyx Capital Group, warned that the crisis is still in its early stages. "The real impact in Europe and global markets will become more pronounced, with prices potentially exceeding $120 per barrel," Newman noted.