Global energy markets were thrown into turmoil Monday morning as oil prices surged past the $115 mark following the opening of Asian trade.

The spike, triggered by the intensifying conflict involving Iran, the United States, and Israel, has sparked a massive sell-off across Asian equity markets.

Analysts’ weekend predictions of oil hitting $100 were quickly eclipsed as Brent crude jumped 22% to reach $115 per barrel. Simultaneously, US West Texas Intermediate (WTI) rose to $113.40, while Murban crude climbed to $120.

Supply Fears and Infrastructure Damage
The price rally follows a weekend of intensified military action. On Saturday and Sunday, joint U.S.-Israeli airstrikes reportedly targeted Iranian fuel depots and critical infrastructure.

Compounding market anxiety is the potential long-term closure of the Strait of Hormuz, a vital artery for global oil and liquefied natural gas (LNG).

Adding to the geopolitical tension, Tehran’s announcement on Sunday naming Mojtaba Khamenei as the successor to the Supreme Leadership suggests a consolidation of power within the hardline establishment.

The International Monetary Fund (IMF) warned of the economic fallout, noting that every 10% increase in oil prices typically adds 0.4% to global inflation and reduces global economic growth by 0.15%.

Bloodbath in Asian Stock Markets
Equity markets across the Asia-Pacific region recorded sharp declines as investors scrambled for safe-haven assets:

• South Korea’s KOSPI: Plunged over 8%, triggering a 20-minute "circuit breaker" trading halt to prevent a total collapse.
• Japan’s Nikkei 225: Dropped by more than 7%.
• Australia’s ASX 200: Fell over 4%.
• Hong Kong’s Hang Seng: Declined by more than 3%.

The panic was exacerbated by reports that major OPEC producers—Iraq, the UAE, and Kuwait—have begun scaling back production as shipments remain stalled in the Gulf.

Projections: $150 Oil on the Horizon?
Economists are warning that the crisis is unlikely to resolve quickly. Adnan Mazarei of the Peterson Institute for International Economics suggested that if the Strait of Hormuz remains closed through late March, prices could shatter records and hit $150 per barrel.

The impact is already being felt in secondary markets, with prices for jet fuel and fertilizer raw materials beginning to climb. In a shift of global logistics, several LNG tankers originally bound for Europe have reportedly diverted in the mid-Atlantic to serve Asian buyers willing to pay higher premiums.

Political Reactions
U.S. President Donald Trump addressed the price hike, characterizing it as a "short-term" necessity. "This is a small price to pay to eliminate the Iranian nuclear threat," Trump stated.

Conversely, the U.S. Energy Secretary attempted to distance the administration from the direct impact on energy sites, telling domestic media that the strikes on Iranian fuel infrastructure were carried out by Israel, not the U.S., in an apparent effort to soothe domestic concerns over rising gasoline prices.