Crude oil prices have climbed above $110 per barrel—up 20% in days and over 50% since the war began—as the US-Israel conflict with Iran persists into its second week, fueling fears of prolonged supply disruptions in the Persian Gulf. Asian markets tumbled, while US President Donald Trump called the spike a 'necessary sacrifice' for security.
Building on last week's surge past $90 amid initial attacks and Strait of Hormuz blockages, oil prices accelerated higher late Sunday. West Texas Intermediate (WTI) settled at $111.24 per barrel (159 liters), up roughly 20% from Friday and the highest since 2022. Brent crude rose similarly to $111.14, more than 50% above pre-war levels around $73.
Trump addressed the rise on Truth Social: "Short-term oil prices, which will quickly fall again once the destruction of the Iranian nuclear program is complete, are a very small price to pay for security and peace in the USA and the world. Only fools would think otherwise."
Nervous markets eye worsening supply risks, with 20% of global oil trade normally passing the Strait of Hormuz daily—now largely halted by Iranian threats. Producers like Iraq, Kuwait, and the UAE have cut output as storage fills. Qatar's Energy Minister Saad al-Kaabi warned of potential Gulf-wide shutdowns pushing prices to $150.
Recent strikes intensified fears: Israel hit Iranian fuel depots, with spokesman Effie Defrin saying, "This is the oil that keeps the wheels of the regime and its terror actions running." The US insists it spares energy sites, per Energy Minister Chris Wright on CNN.
Asian stocks opened sharply lower: Japan's Nikkei dropped 6% to 52,287, South Korea's Kospi similarly. European Dax and US S&P 500 futures fell over 2%.
