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Oil Prices Surge Past $100 as US–Iran Tensions Trigger Market Volatility

Global oil markets rebounded sharply on Tuesday, with Brent crude oil climbing above $100 per barrel following a steep drop the previous day. The sudden price movement reflects growing uncertainty over relations between the United States and Iran, amid conflicting signals about possible diplomatic engagement.

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During Asian trading, Brent crude rose by about 4% to $103.94 per barrel, while Nymex Light Sweet crude also gained over 4%, reaching $91.75. The recovery came after Monday’s sharp decline, when prices fell more than 10% following comments by Donald Trump suggesting a delay in planned US military action against Iranian infrastructure.

Trump had indicated that Washington was making progress in discussions with Tehran, hinting at a possible resolution. However, Iranian officials quickly dismissed these claims, accusing the US of attempting to influence global markets through misinformation.

Tensions escalated further after earlier threats from Washington to strike Iranian power facilities if the strategic Strait of Hormuz remained blocked. Iran, in response, warned it could target key infrastructure across the region. These developments previously pushed oil prices as high as $113 per barrel, highlighting the sensitivity of energy markets to geopolitical risks.

The conflict, which intensified after joint US and Israeli strikes on Iran in late February, has severely disrupted global energy flows. The Strait of Hormuz, a vital route for about one-fifth of the world’s oil and liquefied natural gas, has effectively been shut, intensifying supply concerns.

Despite the turbulence in energy markets, Asian stock exchanges showed signs of stability on Tuesday. Japan’s Nikkei 225 rose by 0.8%, Hong Kong’s Hang Seng Index gained 1.6%, and South Korea’s Kospi advanced by 2.2%, recovering from sharp losses a day earlier.

Governments worldwide are taking steps to cushion the impact of rising energy costs. The US has temporarily relaxed sanctions on some Russian and Iranian oil shipments already in transit to ease supply shortages. Meanwhile, China has scaled back planned fuel price increases to reduce pressure on consumers as the crisis continues to drive up global energy prices.