Oil Near $100 as Iran War Enters Third Week, Markets Remain Jittery

By Sabeeh Zanair :

Global oil prices hovered close to $100 a barrel on Monday while stock markets showed mixed performance, as the conflict involving Iran moved into its third week with no clear sign of de-escalation.

Investors remained focused on developments around the Strait of Hormuz, a critical waterway for global energy supplies, as diplomats attempted to secure safe passage for oil tankers through the region.

Oil prices jump after strike reports

Crude prices surged early in trading after Donald Trump said at the weekend that US forces had struck military targets on Kharg Island.

The island, located in the Gulf, handles the vast majority of Iran’s crude exports. Trump also warned that attacks could expand to include energy infrastructure if Tehran interfered with shipping through Hormuz.

However, Iran’s Fars News Agency later reported that oil facilities on the island had not been damaged during the strikes.

Calls for international naval presence

Trump urged other countries to deploy warships to help keep the waterway open, suggesting nations that depend on oil shipments through Hormuz should take responsibility for protecting the route.

He said countries including China, France, Japan, South Korea and the United Kingdom could contribute naval forces.

But Japan said it was not currently considering launching a maritime security operation, while Australia ruled out sending naval ships to the region.

Iran rejects negotiations

Iran’s Foreign Minister Abbas Araghchi said Tehran had no plans to hold talks with Washington.

In an interview with CBS News, he said Iran saw no reason for negotiations after the United States launched attacks while diplomatic discussions were ongoing.

“We don’t see any reason why we should talk with Americans,” he said, adding that Iran had not requested a ceasefire or negotiations.

However, he indicated Tehran was willing to engage with countries seeking assurances about the safe passage of their vessels through the Gulf.

Markets react to prolonged conflict fears

Oil benchmarks rose sharply amid the uncertainty. Brent crude climbed to about $106.50 a barrel before easing, while West Texas Intermediate traded around $99.

Equity markets across the Asia-Pacific region were largely under pressure, with declines recorded in Tokyo, Shanghai, Sydney, Seoul, Manila and Jakarta.

Meanwhile, shares in Hong Kong, Singapore and Taipei posted modest gains.

Analysts said investor confidence remained fragile amid concerns the conflict could disrupt global energy supplies and slow economic growth.

Central banks in focus

Attention is also turning to policy meetings scheduled this week at several major central banks, including the Federal Reserve, Bank of England and the European Central Bank.

While policymakers are widely expected to leave interest rates unchanged, investors will be watching closely for any comments on how the ongoing conflict could affect the global economy.

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