Global oil markets surged on Monday as tensions in the Middle East intensified. Prices climbed sharply after Iran warned it was prepared for a potential US ground invasion.
Brent crude, the global benchmark, rose more than 3% to cross $116 a barrel.
This marks its highest level since March 19, when prices briefly touched $119 amid earlier escalations in the conflict.
Iran signaled readiness for a potential ground invasion by the United States, further raising geopolitical risks.
A senior parliamentary official warned that Tehran was waiting for US troops to arrive to “set them on fire” and “punish” their regional allies.
The situation intensified over the weekend as Iranian-backed Houthis launched missiles at Israel for the first time in the ongoing war.
At the same time, Israel expanded its military operations in southern Lebanon, opening another front in the conflict.
Strait of Hormuz disruption deepens crisis
The effective closure of the Strait of Hormuz has significantly disrupted global energy supplies.
Roughly one-fifth of the world’s oil and liquefied natural gas flows through the strait, making it a critical chokepoint.
The disruption has pushed the world toward what analysts describe as the biggest energy crisis in decades.
Global markets react sharply
Asian stock markets tumbled in response to the escalating crisis.
Japan’s Nikkei 225 and South Korea’s KOSPI both dropped more than 4% in early trading.
Crude prices have jumped nearly 60% since the war began on February 28.
The surge has already led to higher fuel prices worldwide, forcing several countries to adopt emergency energy-saving measures.
US Pressure and diplomatic signals
US President Donald Trump has threatened to “obliterate” Iran’s energy infrastructure if it does not ease control over the strait by April 6.
Trump, who recently extended the deadline by 10 days, also expressed optimism about a possible breakthrough in talks.
“I do see a deal in Iran… Could be soon,” he told reporters aboard Air Force One.
However, Tehran has rejected the US proposal and instead demanded war reparations and recognition of its control over the strait.
Greg Newman, CEO of Onyx Capital Group, warned that the full impact of the disruption is yet to be felt.
He noted that Europe is only beginning to experience supply shortages due to delays in oil shipment cycles.
“Brent is starting to reflect reality, and we think it’s a steady rise toward $120 and beyond,” Newman said.
He added that the scale of disruption is unprecedented and not fully understood by global markets.
While Iran has allowed limited passage for non-US and non-Israeli vessels, overall traffic remains significantly reduced.
Pakistan’s Foreign Minister Ishaq Dar announced that 20 Pakistani-flagged ships were allowed to pass through the strait.
Similarly, Malaysian Prime Minister Anwar Ibrahim confirmed that Malaysian vessels had also received clearance.
Despite these developments, daily ship transits remain far below pre-war levels of around 120 vessels.
