Global oil prices have crossed the $100 per barrel threshold for the first time since 2022 due to the intensifying conflict between the US, Israel, and Iran. Markets fear prolonged energy supply disruptions if the Strait of Hormuz is blocked. US President Donald Trump described this price surge as a “small price to pay” for eliminating Tehran’s nuclear threat.
BBC News reported that Brent crude jumped 15.5% to $107.16 during Asian trading on Monday. Simultaneously, American WTI crude rose by 17%. This spike followed new US and Israeli airstrikes on Iranian oil storage facilities and the appointment of Mojtaba Khamenei as the country’s next Supreme Leader. This move indicates that power in Iran remains firmly in the hands of hardliners. The actual market jump was lightning-fast, with prices surging by 10% in just one minute of trading. Analysts predict that prices could reach $150 per barrel if the blockade persists.
White House Position and Energy Security
President Donald Trump stated on Truth Social that the current rise in fuel costs is temporary.
“Short-term oil prices, which will quickly plummet after the Iranian nuclear threat is eliminated, are a very small price to pay for the security and peace of the United States and the whole world,” he wrote.
Trump emphasized that the security of the US and the world is the priority, adding that “only fools think otherwise.” The President further noted that Iran’s new Supreme Leader “will not last long” without his personal approval.
Meanwhile, US Energy Secretary Chris Wright explained Washington’s pragmatic steps in a CNN interview. He noted that the US granted India a temporary 30-day waiver to purchase Russian oil. This decision was made to unload tankers that had been waiting at sea for six weeks and to alleviate fears of a global shortage. The Secretary emphasized that this does not represent a policy change regarding Russia’s isolation. Instead, it serves as a short-term measure to curb domestic gasoline prices. Wright mentioned that India has been an excellent partner, previously replacing Russian imports with oil from the US and Venezuela.
Previously, The Ukrainian Review reported that Belgium, with French military support, seized an oil tanker belonging to Russia’s “shadow fleet.”
