On Sunday, President Donald Trump said surging oil prices are a “very small price to pay” for global security as escalating tensions with Iran pushed crude above $100 a barrel and sent U.S. stock futures sharply lower.
Oil Surges As Iran War Sparks Supply Fears
Global oil prices jumped nearly 20% to around $108 per barrel — the highest level since 2022 — as the expanding conflict involving the U.S., Israel and Iran raised fears of disruptions to energy supplies.
Much of the concern centers on the Strait of Hormuz, a vital shipping route through which roughly a fifth of the world’s oil passes. Any prolonged disruption to tanker traffic in the region could tighten global supply and drive prices even higher.
The spike in crude triggered a sharp reaction in financial markets ahead of the new trading week.
Dow futures plunged 908 points, or 1.92%, to 46,606, while S&P 500 and Nasdaq futures fell 1.95% and 2.39% to 6,612.50 and 24,083.50, respectively.
At the same time, WTI Crude April 26 futures surged sharply, with futures jumping 19.10% to trade at $108.26 per barrel.
Meanwhile, the U.S. Dollar Index, which measures the strength of the greenback against a basket of major currencies, rose 0.72% to 99.569.
At the time of writing, Asian markets plunged, with Japan’s Nikkei 225 falling 3,517.38 points, or 6.32%, to 52,103.46, while South Korea’s KOSPI dropped 405.21 points, or 7.26%, to 5,179.66.
Donald Trump Defends Oil Spike
Trump addressed the surge in oil prices in a post on Truth Social over the weekend, arguing the economic impact would be temporary.
“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A. and world safety and peace,” he wrote. “ONLY FOOLS WOULD THINK DIFFERENTLY!”
Leadership Tensions Escalate In Tehran
The conflict has intensified political tensions inside Iran. Reports indicate that Mojtaba Khamenei has been named as the successor to his father, Supreme Leader Ali Khamenei.
Iranian leaders rejected Trump’s demand for “unconditional surrender.” Parliament Speaker Mohammad Bagher Ghalibaf said the country’s future would be determined by Iranians, not foreign powers.
Meanwhile, Israeli Defense Minister Israel Katz warned that any future Iranian leader could be targeted.
Tehran Faces Toxic Air After Oil Strikes
The Human Rights Activists News Agency, or HRANA, a U.S.-based rights group, on Sunday said it recorded 752 attacks across 148 incidents in 30 provinces within 24 hours as the Iran war entered its ninth day.
The group also reported worsening environmental conditions in Tehran after strikes on oil facilities, warning that toxic pollution has blanketed the capital and led to reports of “black rain.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Joey Sussman
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