Global energy markets and Asian stock exchanges reacted sharply on Monday after US President Donald Trump issued a 48-hour ultimatum to Tehran, demanding the immediate reopening of the Strait of Hormuz.
The threat of "decimation" to Iran’s energy infrastructure, combined with Israel’s warning of an extended ground campaign, has pushed oil prices toward critical thresholds.
Crude Prices Spike Amid Supply Fears
At 0015 GMT, West Texas Intermediate (WTI), the USbenchmark, rose 0.44% to USD 98.66 per barrel, having briefly touched the USD 100 mark earlier in the session.
Global benchmark Brent crude held steady at USD 112.17.
The dramatic escalation is underscored by the fact that on February 27—just before US-Israeli operations against Iran began—WTI sat at USD 67.02 and Brent at USD 72.48.
The spike is driven by the near-total halt of petroleum shipments through the Strait of Hormuz, a bottleneck through which 20% of the world's oil and gas transits.
President Trump, posting on Truth Social, warned that USforces would "hit and obliterate" Iranian power plants, starting with the largest facilities, if the waterway is not fully reopened by 23:44 GMT on Monday.
Tehran and Tel Aviv Signal Protracted Conflict
In a direct rebuttal, the Iranian military, via the Fars news agency, threatened to retaliate by targeting USand regional energy and desalination infrastructure.
Concurrently, Israel’s military chief, Lieutenant General Eyal Zamir, confirmed on Sunday that forces are expanding ground operations against Iran-backed Hezbollah in Lebanon.
"We are now preparing to advance the targeted ground operations and strikes according to an organized plan," Zamir stated, warning that the war would likely continue for several more weeks.
Asian Markets in RetreatThe heightened geopolitical tension triggered a sell-off in Asian markets during early trade. South Korea’s Kospi index plummeted 4.69% to 5,509.88 points, while Japan’s Nikkei 225 dropped 3.54% to 51,483.91 points.
Investors remain on edge as Iran continues to deploy missile and drone strikes against energy targets and shipping vessels in the Gulf, specifically targeting those attempting to navigate the contested strait.
Source: AFP
