Oil tops $100 as Hormuz tensions rattle markets

By Goli Innocent

Global oil prices surged past $100 per barrel on Friday as tensions in the Middle East escalated, triggering widespread declines in global stock markets.

Investors are bracing for potential disruptions to energy supplies amid growing fears of a prolonged conflict.

Iran’s newly installed leader, Ayatollah Mojtaba Khamenei, signalled that the Strait of Hormuz, a vital passage for roughly a fifth of global oil, could be blocked if hostilities continue.

He also hinted at opening new fronts in the region should the war persist.

Attacks on energy infrastructure have already intensified this week, with reports of targeted oil facilities in Saudi Arabia, fuel tanks in Bahrain, and vessels near Iraq.

The moves have added to worries of extended supply shocks that could ripple across global markets.

Crude prices reacted sharply. Brent crude rose over nine percent on Thursday and held above $100 on Friday, while West Texas Intermediate traded near $95 per barrel.

Analysts say the surge reflects growing expectations of prolonged market disruption despite the International Energy Agency releasing 400 million barrels from strategic reserves.

The spike in oil prices has pressured global equities, particularly across Asia. Major indices in Tokyo, Hong Kong, Shanghai, Singapore, and Seoul all closed lower as investors moved away from risk assets.

The strengthening US dollar added further caution, reinforcing safe-haven flows.

US President Donald Trump sought to downplay the threat, highlighting the US as the world’s largest oil producer.

Still, analysts warn that elevated energy prices and prolonged geopolitical risk could weigh heavily on the global economy.

Market experts say the outlook remains uncertain. Chris Weston of Pepperstone noted that traders are pricing in a longer conflict, while Matt Weller of City Index warned of higher interest rates and continued volatility.

Unless progress toward a ceasefire is made, energy markets and global equities may remain under pressure in the weeks ahead.