Brent crude climbed above $116 a barrel on Monday as tensions in the Middle East drove energy prices higher. Asian stocks fell sharply after Donald Trump raised the possibility of targeting Iranian oil infrastructure.
European gas prices also rose as traders weighed the risk of wider supply disruption. Investors kept watching the Strait of Hormuz and Iran’s Kharg Island export hub. The latest moves showed how quickly geopolitical tension can unsettle energy and equity markets.
Brent crude gained about 2% in early Monday trading and moved above $116 a barrel. Trump’s remarks about targeting Iranian oil assets, including Kharg Island, triggered the move. He said, “Maybe we take Kharg Island, maybe we don’t. We have a lot of options.” Those comments added fresh pressure to an already strained oil market.
Oil prices had already surged in recent weeks as the conflict spread across the region. Brent also touched $119.50 during March, marking its highest level since June 2022. The benchmark has now risen about 59% since the start of March. That pace puts Brent on track for one of its strongest monthly gains in decades.
Traders continue to watch the Strait of Hormuz, which carries a major share of global oil. Any long disruption could tighten supply further and push prices even higher. Markets also remain focused on Kharg Island because it handles much of Iran’s crude exports. Supply fears now drive a large share of oil market pricing.
Asian stock markets opened lower as oil prices rose and conflict risks deepened. Japan’s Nikkei fell about 3%, while South Korea’s Kospi dropped 3.4% in early trading. Hong Kong’s Hang Seng index also lost about 1% during the session. Those declines reflected concern about rising energy costs and weaker economic activity.
Many Asian economies rely heavily on oil and gas flows from the Gulf region. Higher energy prices raise costs for transport, industry, and households across those markets. Investors responded by cutting equity exposure and moving into safer positions. The sell-off showed how quickly an oil shock can spread through financial markets.
European markets traded with more restraint at the start of Monday’s session. The Stoxx 600 slipped slightly, while the FTSE 100 edged higher. Mining shares helped support the London market even as broader caution stayed in place. Investors continued to balance commodity gains against the risk of slower growth.
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European natural gas prices also climbed as traders priced in more supply risk. Dutch month-ahead futures rose 1.6% to just above €55 per megawatt-hour. That move showed that concern had spread beyond crude oil. Energy markets remained highly sensitive to each new development in the region.
The crisis widened in recent days, raising fears of a longer disruption. Another 3,500 U.S. troops arrived in the Middle East as tensions remained elevated. Houthi forces in Yemen also entered the conflict by firing ballistic missiles at Israeli targets. That move added another layer of strain to regional security.
Industry figures also warned about tighter fuel supplies in some consumer markets. In the UK, officials warned of temporary shortages at petrol stations. Average petrol prices have already moved above 150 pence a litre. Traders now watch closely for any further military action that could disrupt energy routes.