Oil surges past $116 as Iran-US tensions escalate into fifth week
Brent crude climbed more than 3 percent Monday amid deepening conflict, with Iran warning of readiness for ground invasion and threatening expanded strikes.
10:43 AM
Oil prices jumped to their highest level in nearly two weeks Monday as the US-Israel conflict with Iran entered its fifth week, with Brent crude rising more than 3 percent to top $116 a barrel.
The surge marked the international benchmark's highest point since March 19, when it briefly touched $119 a barrel. US-traded oil climbed to $101.62 after gaining almost 2 percent, putting Brent on track for its biggest monthly gain on record.
The price movement followed escalation on multiple fronts of the conflict over the weekend. Iran said it was prepared for a US ground invasion, with the speaker of the country's parliament warning that Tehran was waiting for the arrival of US troops to "set them on fire" and "punish" their regional allies. Iran also threatened to expand retaliatory strikes against universities and the homes of US and Israeli officials.
Iran-backed Houthi rebels in Yemen joined the conflict by striking Israel over the weekend, further deepening the regional tensions.
US President Donald Trump said in an interview with the Financial Times on Sunday that he could "take the oil in Iran" and possibly seize its major fuel hub of Kharg Island. When asked about Iranian defence on the island, Trump said: "I don't think they have any defence. We could take it very easily."
Asian stock markets declined sharply Monday in response to the oil price movement and geopolitical tensions. Japan's Nikkei 225 lost 2.8 percent, while South Korea's Kospi closed almost 3 percent lower.