Oil Stays Above $100 as Stocks Drop Amid Middle East Crisis

Oil prices held around $100 on Friday as Iran threatened to block the Strait of Hormuz. The warning raised global economic concerns. Most equity markets dropped in response to the escalating Middle East conflict. Investors fear a prolonged crisis could fuel inflation and disrupt the global economy.

Iran has targeted energy facilities this week, including ships near Iraq, fuel tanks in Bahrain, and Saudi oil fields. Tehran warned it would strike regional oil and gas if its own infrastructure is attacked. The conflict shows no signs of ending as it heads into its third week.

Ayatollah Mojtaba Khamenei, in his first public comments since succeeding his father, called for closing the Strait of Hormuz. The strait handles a fifth of global oil and gas exports. He also mentioned opening other vulnerable fronts if the war continues.

Crude surged more than nine percent Thursday, with Brent crude exceeding $100 per barrel for the first time since 2022. Brent has risen around 40 percent since the Middle East war began on February 28. Analysts said the IEA’s release of 400 million barrels had little impact on prices.

Read more : Global Oil Prices Surge as Brent Crude Crosses $101 Per Barrel

US President Donald Trump struck a defiant tone on social media, noting the US benefits from higher oil production. He emphasized stopping Iran from obtaining nuclear weapons and protecting global stability. Meanwhile, analysts warned markets are pricing in a longer conflict duration.

Equity markets fell across Asia, with Tokyo, Hong Kong, Shanghai, Singapore, Seoul, Wellington, Manila, and Jakarta all down. The dollar held gains against major currencies due to safe-haven demand, inflation fears, and expectations of elevated interest rates. Market experts warned investors to prepare for sustained volatility.

Key figures early Friday showed West Texas Intermediate at $95.65 per barrel, Brent at $100.46, Tokyo Nikkei down 1.2 percent, and Hang Seng down 0.7 percent. The euro rose to $1.1518, pound to $1.3357, while dollar/yen fell to 159.25. Traders expect oil prices to remain high until meaningful progress toward a ceasefire occurs.