LONDON, Mar 30 (AFP): Oil prices rose as the Middle East crisis escalated with the entry of Houthi rebels into the war and as US President Donald Trump threatened to destroy Iran's main export terminal.
The cost of Brent crude lifted more than 3.0 per cent to 117 US dollars a barrel at one stage on Monday trading amid continued attacks by the US and Israel on Iran, and with the Iranian-backed Houthi rebels entering the war on Saturday with its first missile attack.
Trump expressed confidence that a negotiated settlement would soon be reached but warned that if it was not-or if Iran continued to block the Strait of Hormuz to most sea traffic-US forces would "blow up" Kharg Island and all of Iran's oil wells and electricity generation.
Brent North Sea crude, the international benchmark, jumped more than three percent at one point to reach almost $117 per barrel in Asian trading.
It stood up 2.4 per cent at $107.86 per barrel as Wall Street stocks trading got underway.
Wall Street's main equities indices rose, with the Dow adding 0.9 per cent.
Briefing.com analyst Patrick O'Hare compared the situation in the global economy and on markets to an intersection where the traffic light is flashing all colours at once.
Equity investors "are taking their cue this morning from the green light" of "Trump indicating serious discussions are taking place with a new and more reasonable regime to end the military operations in Iran", he said.
Oil markets, on the other hand, took their cue from the red light of Trump's threats to destroy Iran's oil fields and export terminal, as well as reports the United States is readying ground troops, plus the Houthis getting involved in the war by firing missiles at Israel, he added.
European stocks were higher in afternoon trading, with Frankfurt rising 0.5 per cent despite data showing German inflation in March jumped to its highest level since January 2024, hitting 2.7 per cent on the back of rocketing energy prices due to the Middle East war.
Aluminium prices climbed as much as around six per cent on the London Metal Exchange after Iran attacked two major aluminium plants in the Gulf, raising concerns over supply disruptions, but then pulled back and fell.
Asia's leading stock markets closed lower. The Japanese yen jumped on talk that the Bank of Japan could intervene on markets to shore up the country's currency.
The yen's gains weighed heavily on Japanese exporters, with the Tokyo stock market closing down almost three per cent.
India's rupee fell to a record low of more than 95 to the dollar on Monday, before recovering, despite recent efforts by the central bank to stem its fall.
The world's most populous nation is one of the "most vulnerable economies within Asia to an energy price shock", analysts at Nomura wrote in a note.
As the conflict moved into its fifth week, the spectre of a widening conflict grew as Houthi rebels on Saturday said they had fired "a barrage of cruise missiles and drones" at strategic sites in Israel.
© 2026 - All Rights with The Financial Express
