Oil Prices Surge Above 100 US Dollars, Market Confused by US-Iran Claims
JAKARTA - Global crude oil prices have once again surged, breaking through the 100 US dollar per barrel level, amid uncertainties surrounding the direction of the conflict between the United States, Israel, and Iran, which shows no signs of abating.
Brent crude rose 4.55 per cent to 104.49 US dollars per barrel, while West Texas Intermediate (WTI) strengthened 4.79 per cent to 92.35 US dollars per barrel.
US President Donald Trump stated that there is still an opportunity for the conflict to end in the near future.
In his remarks during the inauguration of Markwayne Mullin as Secretary of Homeland Security, Trump described Iran as “completely defeated” and claimed that the US is engaging in negotiations with Iranian leaders.
This tension has triggered high volatility in the global energy market. The US and Israeli strikes on Iran were met with Tehran’s effective blockade of the Strait of Hormuz, a vital route through which approximately 20 per cent of the world’s daily oil and liquefied natural gas supplies pass.
As a result, oil prices once spiked to 113 US dollars per barrel before fluctuating again.
Shell’s chief executive, Wael Sawan, even warned of a potential oil supply shortage in Europe starting next month. He noted that the energy crisis impacts have spread from South Asia to Southeast Asia and East Asia, and are expected to become more pronounced in Europe by April.
“South Asia was the first region to feel the impact. The effects then shifted to Southeast Asia, East Asia, and will increasingly be felt in Europe entering April,” he said, quoted from BBC on Wednesday (25/3/2026).
Oil prices dipped temporarily following Trump’s statement delaying attacks on Iran’s energy infrastructure for five days, after what he described as constructive talks.
However, doubts about the effectiveness of those negotiations have once again pushed oil prices above 103 US dollars per barrel.
Meanwhile, in Europe, London’s FTSE 100 index rose 0.72 per cent, while Germany’s DAX dipped slightly and France’s CAC 40 gained 0.23 per cent.
In contrast, Asian stock markets recorded gains. Japan’s Nikkei 225 rose 1.4 per cent, while Hong Kong’s Hang Seng Index and South Korea’s KOSPI each strengthened by more than 2.7 per cent.
The conflict’s impacts are also being felt in the real sector. UK businesses reported the largest increase in input costs since 1992, according to the S&P Global Purchasing Managers’ Index survey.
Several countries have begun taking steps to mitigate the surge in energy prices. The United States has eased some sanctions on Russia and Iranian oil, while China has postponed fuel price hikes to reduce pressure on consumers.