Brent crude jumped more than 3% to above $115 a barrel Monday as Iran-backed Houthi rebels struck Israel over the weekend, escalating a conflict that has already choked off a fifth of the world's oil and gas supplies through the Strait of Hormuz. The price surge puts the benchmark on track for its biggest monthly gain on record, with US crude climbing to $101.62 after gaining almost 2%.

Key Facts
  • Brent crude rose from $72 on February 27 to above $115 today — a 60% spike in just over a month
  • Around 20% of global oil and gas supplies typically pass through the Strait of Hormuz
  • Iran has threatened to attack ships crossing the strait in retaliation for US-Israeli strikes
  • President Trump said he could "take the oil in Iran" and seize Kharg Island
Asian markets tumbled alongside the oil surge, with Japan's Nikkei 225 losing 2.8% and South Korea's Kospi closing almost 3% lower. The escalation came as Iran threatened to expand retaliatory strikes against universities and homes of US and Israeli officials, while 3,500 additional US troops arrived in the Middle East.
"My greatest fear is that you have a general economic slowdown around the world... because consumers simply run out of money as they're spending more on energy and, in addition, food."
The energy crisis extends beyond oil. Lars Jensen, a shipping expert and former Maersk director, warned that "20 to 30% of the seaborne fertiliser in the world" originates from the Gulf region, threatening rapid food price escalation especially in poorer countries.
$72
Brent price Feb 27
$119.50
March 18 peak
$115+
Current price
Jensen, who now runs shipping consultancy Vespucci Maritime, said the impact could be "substantially larger" than the 1970s oil crisis that sparked economic chaos. Even if the Strait of Hormuz "magically were to open tomorrow," he warned of continued price rises as oil loaded before the crisis only now reaches refineries. President Trump escalated tensions in a Financial Times interview Sunday, saying he could "take the oil in Iran" and possibly seize Kharg Island, Iran's major fuel hub. "I don't think they have any defence. We could take it very easily," Trump said, comparing the potential move to US control of Venezuela's oil industry "indefinitely" after seizing it in January.
Why Kharg Island MattersThe tiny island houses critical Iranian energy infrastructure and serves as a major export terminal for the country's oil industry.
Iran's parliament speaker responded that the country's forces were "waiting for American soldiers," underscoring how quickly the conflict could expand. The Houthi strikes raised new concerns about the Bab al-Mandeb strait near Yemen, according to Macquarie University energy expert Sean Foley. A blockade there could hit another 10% of world oil supply, "putting significant strain on global supply chains." Andrew Lipow from Lipow Oil Associates expects Brent to reach $130 a barrel in coming weeks as threats against global energy supplies continue. The price was around $72 on February 27, the day before the US and Israel struck Iran, and hit $119.50 on March 18 — the highest level since June 2022.
Consumers haven't felt the full impact yet. Judith McKenzie, a partner at investment firm Downing, told BBC Radio 4 that "oil shocks don't show up instantly." If the Gulf situation resolves this week, "although it's going to take a little bit of time to unwind and we will see inflation, it is fixable." But the window for a quick resolution appears to be narrowing. The conflict has now entered its fifth week with no signs of de-escalation, and each new strike pushes oil markets further into uncharted territory. The convergence of supply disruption and military escalation has created a volatile spiral that traders say could reshape global energy markets for months to come.