By Blessing Nweke

Global oil prices surged past $110 per barrel on Monday, sending shockwaves through financial markets as escalating military strikes between the United States, Israel and Iran raised fears of prolonged disruption to energy supplies in the Middle East.

The spike came after fresh airstrikes over the weekend targeted multiple sites across Iran, including oil depots in Tehran. Fires broke out at the Shahran oil facility following attacks reportedly carried out by the United States and Israel, intensifying concerns about the security of oil infrastructure in the region.

Investors reacted swiftly, with crude prices jumping more than 10% within minutes of early Asian trading before climbing another 10% shortly afterward. The surge pushed global benchmark oil prices above $110 per barrel, while major stock markets across Asia and Europe slid as traders weighed the economic consequences of a widening conflict.

A key concern is the potential disruption of shipments through the Strait of Hormuz, a critical global shipping route for oil and liquefied natural gas. Millions of barrels of crude oil pass through the narrow waterway daily, making it one of the most strategically important energy corridors in the world.

The tensions escalated further after Iran announced that Mojtaba Khamenei would succeed his father, Ali Khamenei, as the country’s Supreme Leader. The move suggests that hardline leadership will continue during the conflict, raising fears that hostilities could drag on.

Analysts warn that if shipping through the Strait of Hormuz remains disrupted until the end of March, oil prices could soar above $150 per barrel, potentially triggering global inflation and raising fuel costs for consumers and businesses.

US President Donald Trump acknowledged the rising energy prices but said short-term increases were a “small price to pay” for eliminating what he described as Iran’s nuclear threat, as officials attempted to reassure Americans worried about higher fuel costs.