Photo Credit : AFP
Global financial markets came under pressure on Monday as escalating tensions in the Middle East triggered sharp movements in oil prices and investor sentiment, with growing fears of wider geopolitical involvement.
Oil prices climbed significantly, with Brent crude rising more than three percent to nearly $109 a barrel, while US benchmark WTI crossed the $100 mark, trading close to $102. The surge reflects concerns over potential supply disruptions as the conflict deepens.
Asian stock markets reacted negatively, dropping between one and three percent, while European markets opened on a mixed note, highlighting uncertainty among global investors.
G7 to assess economic impact
France confirmed that finance and energy ministers from the G7, along with central bank leaders and international agencies, would convene to evaluate the economic consequences of the conflict. French Finance Minister Roland Lescure said the discussions would focus on managing volatility in energy markets and broader financial risks.
Governments take action on fuel and energy
In response to rising fuel costs, Australia announced a temporary reduction in fuel taxes. Prime Minister Anthony Albanese said the levy on petrol would be cut in half for three months to ease pressure on consumers facing higher prices.
Meanwhile, Bangladesh introduced energy-saving measures, directing government offices to reduce electricity consumption by limiting air conditioning use and switching off unnecessary lighting as part of efforts to manage an intensifying energy crisis.
Oil supply shifts and strategic moves
The Philippines moved to secure its energy needs, with its sole refinery purchasing nearly 2.5 million barrels of Russian crude. The decision follows disruptions in global supply chains since the conflict began.
Regional infrastructure under strain
The conflict has also impacted critical infrastructure across the Gulf. Kuwait reported damage to a power station following an Iranian strike, which resulted in one fatality.
Industrial facilities in the region were also targeted. Aluminium Bahrain confirmed injuries to two employees after an attack on its plant, while Emirates Global Aluminium in Abu Dhabi reported significant damage to one of its sites, with six people wounded.
Iran restores power amid tensions
Iranian authorities said electricity had been restored in parts of Tehran after recent strikes affected power grids. Officials described the national grid as stable following emergency repairs.
The situation remains tense as the United States signals the possibility of further escalation. President Donald Trump has warned of potential strikes on Iranian infrastructure if diplomatic negotiations fail, adding to concerns about a broader regional conflict.
As the crisis unfolds, global markets continue to react to both immediate disruptions and the risk of prolonged instability in one of the world’s most critical energy-producing regions.
