Oil Near $120 as Iran–US–Israel Tensions Rise, Global Stock Markets Fall

Rising tensions between Iran, the United States, and Israel have pushed global oil prices sharply higher and triggered a decline in international stock markets. Fears of prolonged disruption to oil shipments through the Strait of Hormuz—one of the world’s most critical energy routes—have driven Brent crude prices close to $120 per barrel, according to international reports. The situation intensified after Iran appointed Mojtaba Khamenei as the successor to Supreme Leader Ali Khamenei, while the United States and Israel launched new airstrikes targeting Iranian oil depots over the weekend. The escalating conflict has increased uncertainty in global energy supply, leading to a rapid surge in oil prices.

The sharp rise in oil prices has also caused significant volatility in global financial markets. Major stock indices across India, Japan, South Korea, China, and Australia recorded notable declines, while U.S. stock futures also moved lower. Analysts warn that if disruptions in the Strait of Hormuz continue for an extended period, oil prices could climb to $150 per barrel. Such an increase would raise the cost of key derivative products such as jet fuel and fertilizers, putting additional pressure on global transportation, agriculture, and economic stability. Developing countries like Nepal could also face rising inflation and economic challenges due to increased import costs driven by higher oil prices.