Oil rises above $115 and Asia stocks slide as Iran war escalates

Global oil prices jumped and stocks fell sharply on Monday morning in Asia as the US-Israel war with Iran escalates.

The price of Brent crude rose by more than 3% to above $115 (£86.77) a barrel, while US-traded oil climbed to $103 after gaining around 3.5%. It puts Brent on track for its biggest monthly gain on record.

Stock markets in Asia opened lower, with Japans Nikkei 225 down by 4.5% and the Kospi in South Korea 4% lower.

It comes after Iran-backed Houthi rebels in Yemen joined the conflict by striking Israel over the weekend and Iran threatened to expand retaliatory strikes against universities and the homes of US and Israeli officials

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 he said: I dont think they have any defence. We could take it very easily.

Trump compared the potential move to Venezuela where the US plans to control the oil industry indefinitely after the seizure in January of then-President Nicolás Maduro.

Also over the weekend, Iran‘s parliament speaker warned that his country’s forces were waiting for American soldiers as a further 3,500 US troops arrived in the Middle East.

Global energy markets have been hugely volatile after Tehran retaliated to US and Israeli strikes by threatening to attack ships that try to cross the Strait of Hormuz.

Oil and gas shipments through the a crucial waterway for global energy have largely come to a standstill, pushing up prices of oil and gas.

The price of Brent was at around $72 a barrel on 27 February, the day before the US and Israel struck Iran.

On 18 March, the benchmark oil contract hit $119.50, the highest level since June 2022.