By SAMUEL MOBOLAJI
Global oil prices climbed above $100 per barrel on Monday while Asian stock markets weakened, as the escalating conflict involving the United States, Israel and Iran entered its third week, heightening fears of disruptions to global crude supply.
Energy markets reacted to growing concerns that the conflict could interfere with oil shipments through the Strait of Hormuz, one of the world’s most critical energy transit routes through which a significant share of global crude exports passes.
Prices jumped early in the day after former United States President Donald Trump said American forces had carried out strikes on military targets on Kharg Island, a major export terminal that handles a large portion of Iran’s crude shipments.
Trump warned that the strikes could extend to energy infrastructure if Iran attempted to disrupt shipping through the strategic waterway.
However, Iran’s semi-official Fars News Agency reported that the attacks caused no damage to oil facilities on the island.
The Strait of Hormuz has effectively remained closed since military operations began on February 28, raising fears among traders and energy analysts of potential supply disruptions in global oil markets.
Trump has also called on several countries to deploy naval forces to secure commercial shipping routes in the region, naming China, France, Japan, South Korea and the United Kingdom.
Japan has indicated it is not considering participation in a maritime security mission, while Australia has also ruled out sending naval vessels to the area.
Trump further claimed that Tehran was seeking negotiations to end the conflict but insisted that Washington would not accept talks under the current conditions.
In response, Iran’s Foreign Minister, Abbas Araghchi, said Tehran had no interest in negotiating with the United States following the attacks.
Araghchi noted that Iran had been engaged in discussions with Washington prior to the outbreak of hostilities but saw no reason to continue negotiations after the strikes.
He added, however, that Iran remained open to discussions with other countries regarding guarantees for the safe passage of their vessels through the Strait of Hormuz.
Meanwhile, hostilities continued to spread across the region.
Saudi Arabia said it intercepted more than 60 drones overnight, while flights were temporarily suspended at Dubai International Airport after a drone-related incident triggered a fire near the facility.
Global financial markets remained under pressure amid fears that a prolonged conflict could trigger a broader energy crisis.
Benchmark Brent crude briefly rose to about $106.50 per barrel before settling near $104, while West Texas Intermediate crude climbed above $100.
Analysts warn that prolonged disruption to shipping through the Strait of Hormuz could tighten global oil supplies significantly, pushing energy prices higher and fuelling inflationary pressures across major economies.
SOURCE: THE DAILY NEWS PAPER
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