Global oil prices rose sharply above $100 per barrel on Monday as the ongoing war involving Donald Trump, Israel and Iran entered its third week, heightening fears of a global energy crisis and economic instability.

Crude prices surged at the start of trading after the United States confirmed strikes on military targets on Kharg Island, a key location responsible for handling most of Iran’s oil exports. The development intensified tensions in the region, especially around the strategic Strait of Hormuz, which has been largely closed since the conflict escalated on February 28.

The closure of the vital shipping route has raised concerns about global oil supply, pushing Brent crude to about $106 per barrel while West Texas Intermediate climbed above $100. Analysts say the longer the passage remains blocked, the tighter global oil supply will become, likely driving prices even higher.

Speaking over the weekend, Trump urged other countries to deploy naval forces to help secure the waterway and ensure safe passage for oil tankers. However, some countries have shown reluctance, with Japan stating it is not currently considering a maritime security mission, while Australia said it would not send naval vessels to the region.

Iran, meanwhile, has rejected any immediate talks with Washington. Iran’s Foreign Minister Abbas Araghchi said Tehran sees no reason to negotiate with the United States after the attacks, insisting the country did not request a ceasefire or dialogue. He, however, indicated that Iran was willing to discuss safe passage for ships with other nations.

As the conflict continues, both sides have exchanged strikes across the region. Saudi Arabia reported intercepting more than 60 drones overnight, while flights were briefly suspended at Dubai International Airport following a drone-related incident that sparked a fire nearby.

The escalating crisis has rattled financial markets, with several Asian stock exchanges posting losses amid concerns that prolonged disruption to oil supplies could trigger higher inflation and slow global economic growth.

Energy experts warn that unless transit through the Strait of Hormuz resumes soon, the world could face a prolonged spike in energy prices, putting further pressure on already fragile global markets.