Oil Surges Past $100 a Barrel as Hormuz Crisis Rattles Global Markets

The price of crude oil vaulted above $100 a barrel on Sunday for the first time since 2022, a stark marker of the economic shockwaves from Iran’s ongoing blockade of the Strait of Hormuz. By early Monday, West Texas Intermediate hovered near $102, up 12%, while the global Brent benchmark traded around $106.

The immediate financial reaction was severe. U.S. stock futures plummeted, with Dow futures down nearly 900 points. Markets across Asia opened sharply lower, though they trimmed some losses following reports that Saudi Arabia might increase supply.

President Donald Trump, addressing the spike on Truth Social, characterized short-term oil prices as "a very small price to pay." The comment came as the geopolitical landscape grew more complex; Iran reportedly named Ayatollah Ali Khamenei's son, Mojtaba, as its new supreme leader, and the U.S. ordered non-emergency staff to depart from its embassy in Riyadh.

U.S. Energy Secretary Chris Wright offered a measure of hope, suggesting the Strait's closure may last weeks, not months, after U.S. actions degraded Iran's capacity to threaten shipping. "We're not too long away" from a resumption of traffic, he told CNN.

The crisis is straining international alliances. President Trump is scheduled to meet with China's Xi Jinping later this month, with the Iran war and trade tensions on the agenda. Chinese diplomat Wang Yi reiterated calls for a ceasefire, calling the conflict one that "should not have happened." Meanwhile, G7 nations are preparing an emergency meeting, with discussions reportedly focused on a coordinated release of strategic oil reserves.

The volatility has hit some markets harder than others. South Korea's stock exchange has experienced wild swings, exacerbated by its heavy reliance on memory chip giants and a large retail investor base actively trading derivatives, making it a bellwether for regional anxiety.