Global oil prices hovered near the $100-per-barrel mark on Monday as financial markets reacted to the escalating conflict involving Iran, which has now entered its third week with little sign of de-escalation.
Crude prices surged early in trading after Donald Trump said at the weekend that US forces had struck military targets on Kharg Island in the Gulf. The island is a critical hub that handles the majority of Iran’s oil exports. However, Iran’s Fars News Agency later reported that the strikes did not damage any oil infrastructure.
Read More: US, other countries sending warships to keep Hormuz ‘open and safe’
Trump also warned that attacks could expand to energy facilities if Tehran interferes with shipping through the Strait of Hormuz, a vital global energy corridor that has been effectively closed since US-Israel military operations began on February 28.
Oil jumps 10% on Iran conflict and could spike to $100 a barrel, analysts say https://t.co/Mbn39HzkPO https://t.co/Mbn39HzkPO
— Reuters (@Reuters) March 1, 2026
The US president urged other nations to contribute naval forces to secure the waterway, calling for a joint effort by countries that rely on oil shipments through the strait. In a post on the Truth Social platform, he said nations benefiting from the route should help ensure its security.
However, several countries showed hesitation. Japan said it was not currently considering a maritime security mission, while Australia announced it would not deploy naval ships to the region.
Meanwhile, Iran’s Foreign Minister Abbas Araghchi said Tehran was not interested in negotiations with Washington, accusing the US of attacking Iran while diplomatic talks were ongoing. He noted, however, that Iran remained open to discussions with countries seeking assurances about the safe passage of their vessels.
Read More: Iran allows two Indian LPG tankers to cross Strait of Hormuz
Market optimism about a quick end to the conflict faded after White House economic adviser Kevin Hassett said the Pentagon estimated the operation could last up to six weeks.
Brent crude briefly surged to around $106.50 before easing, while West Texas Intermediate traded near $99. Global stock markets also remained volatile amid fears the conflict could trigger a broader energy crisis and slow economic growth.