By Blessing Nweke
Global oil prices spiked sharply on Monday while Asian stock markets tumbled, as the ongoing US-Israel war entered its fifth week and fears of supply disruptions intensified.
Brent crude rose more than 3% to trade above $115 per barrel, putting it on track for its largest monthly gain on record. US-traded crude also climbed by about 3.5% to around $103 a barrel, reflecting growing anxiety over tightening global energy supplies.
Equity markets across Asia opened significantly lower. Japan’s Nikkei 225 dropped about 4.5%, while South Korea’s Kospi fell roughly 4%, as investors reacted to rising geopolitical risks and inflation concerns tied to surging energy costs.
The latest escalation follows weekend attacks by Iran-backed Houthi rebels in Yemen targeting Israel, widening the conflict and raising fears of further instability in key oil transit routes. Analysts warn that disruptions in strategic chokepoints such as the Strait of Hormuz—through which about one-fifth of global oil supply passes—have already slowed shipments, driving prices higher.
Tensions have also increased after Iran threatened expanded retaliation, while additional US troops were deployed to the Middle East. Meanwhile, US President Donald Trump suggested potential action targeting Iran’s oil infrastructure, further fueling market uncertainty.
Energy experts say the situation could worsen. Concerns are mounting that the Bab al-Mandeb strait near Yemen could also face disruptions, potentially affecting another 10% of global oil flows and straining supply chains further.
Analysts predict Brent crude could rise to $130 per barrel in the coming weeks if hostilities continue. Higher energy costs are also raising fears of a global economic slowdown, as households and businesses face mounting fuel and food expenses.
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