Oil prices stayed around $100 a barrel on Monday as the conflict between Iran and the U.S. moved into its third week, keeping global markets on edge. Stocks bounced around as traders watched developments in the Gulf and diplomats worked to keep tankers moving safely through the Strait of Hormuz.
Crude spiked early after U.S. President Donald Trump said American forces had struck military targets on Kharg Island, which handles almost all of Iran’s oil exports. He warned that attacks could extend to other energy infrastructure if Iran interferes with shipping through the Strait, which has been largely closed since U.S. and Israeli operations began on February 28. Iran later said no oil facilities were damaged.
Trump called on other countries—China, France, Japan, South Korea, and the U.K.—to help protect the waterway but offered no concrete commitments from the U.S. side. Japan and Australia quickly clarified they would not be sending navy ships.
Iran’s Foreign Minister, Abbas Araghchi, said Iran was not interested in talks with Washington. “There is no good experience talking with Americans,” he told CBS. However, he said Iran is open to discussing safe passage with other nations whose vessels pass through the region.
Market watchers had hoped the conflict might end quickly, but U.S. economic adviser Kevin Hassett said Pentagon estimates suggest the operation could take up to six weeks, although it is running ahead of schedule.
Brent crude rose about 3% to $106.50 before pulling back, while West Texas Intermediate hovered near $99. Rising oil worries put pressure on global equities. Markets in Tokyo, Shanghai, Sydney, Seoul, Wellington, Manila, and Jakarta fell, while Hong Kong, Singapore, and Taipei edged higher.
Economists also noted that U.S. growth slowed in Q4, with GDP expanding just 0.7%, and inflation data showed energy prices are pushing the preferred Fed gauge higher.
Investors are watching closely as central banks from seven major economies, including the Fed, Bank of England, and European Central Bank, meet this week. They are expected to hold interest rates steady but may comment on how the Iran war could impact their economies.
Key market figures (around 0230 GMT):
- WTI: $98.75 (+0.1%)
- Brent: $104.21 (+1.0%)
- Nikkei 225: 53,138.42 (-1.3%)
- Hang Seng: 25,550.23 (+0.3%)
- Shanghai Composite: 4,059.70 (-0.9%)
- Dow: 46,558.47 (-0.3%)
- FTSE 100: 10,261.15 (-0.4%)
- Euro/USD: $1.1448 (+0.0032)
- Pound/USD: $1.3255 (+0.0032)
- Dollar/Yen: 159.57 (-0.17)
