Tehran/Jerusalem: Global energy markets faced fresh turbulence on Monday after Iran launched additional attacks targeting Israel and several Gulf states, just hours after the country announced a new supreme leader following the death of its longtime cleric.
Iranian state television reported that Mojtaba Khamenei, the son of former supreme leader Ali Khamenei, had been chosen as the country’s new top authority. The supreme leader holds the highest political and military power in Iran, and the appointment places Mojtaba at the centre of the country’s wartime decision-making.
Soon after the announcement, Iran carried out new military strikes in the region. The country’s powerful Islamic Revolutionary Guard Corps, which answers directly to the supreme leader, is expected to play a key role in directing military strategy during the escalating conflict.
The intensifying hostilities sent shockwaves through global markets. Oil prices surged sharply, raising concerns about rising energy costs and the potential impact on inflation and economic growth worldwide. Higher fuel costs could also reduce consumer spending, particularly in the United States, where household consumption plays a major role in economic activity.
Asian financial markets reacted swiftly to the developments. Japan’s benchmark Nikkei 225 plunged by as much as seven percent in early trading, while other regional markets also recorded steep declines amid fears of supply disruptions in global energy markets.
Tensions also escalated in the Gulf region. Saudi Arabia issued a strong warning to Tehran, stating that Iran would ultimately suffer the most if it continued targeting Arab nations. The warning followed a drone strike that reportedly aimed at the massive Shaybah Oil Field, one of the kingdom’s major oil production sites.
Meanwhile, Donald Trump, the president of the United States, sought to calm concerns about rising fuel prices. While gasoline prices in the US rose about 11 percent over the past week, Trump argued that the temporary spike was a small cost compared with ensuring global security and neutralising Iran’s nuclear threat.
In Washington, Senate Democratic leader Chuck Schumer urged the administration to release oil from the Strategic Petroleum Reserve to ease pressure on prices.
Governments around the world are also exploring measures to limit the economic fallout. Finance ministers from the Group of Seven are expected to discuss the possibility of a coordinated release of emergency oil reserves to stabilise markets.
In South Korea, President Lee Jae Myung announced plans to cap fuel prices temporarily, warning citizens against panic buying as the country relies heavily on oil imports from the Middle East.
With tensions continuing to rise in West Asia and global oil markets already under strain, analysts warn that further escalation could deepen economic uncertainty and push energy prices even higher in the weeks ahead.
