Trump Calls Soaring Oil Prices a “Small Price to Pay” as His War with Iran Sparks Energy Panic

Oil prices have surged above $100 a barrel for the first time in four years as the escalating U.S.-Israeli war with Iran has deepened fears of prolonged disruption to global energy supplies. The speed of the move has stunned markets. Just one month ago, US benchmark crude traded near $63 a barrel. It is now hovering around $115 after jumping more than 25 percent in a matter of days.

The scale of disruption is enormous. Analysts estimate that more than 20 million barrels of crude, condensate and fuels normally move through the Strait of Hormuz each day, and shipping there has ground to a near halt.

Global Stock Markets Slide as Energy Costs Spike

Financial markets reacted immediately. Across Asia, major stock indices fell sharply as investors rushed to price in the economic impact of soaring energy costs. South Korea’s Kospi dropped 8 percent, triggering a circuit breaker that temporarily halted trading. Japan’s Nikkei 225 fell more than 7 percent, wiping roughly $350 billion from the market.

Elsewhere, Taiwan fell 5.5 percent, Australia declined 4.7 percent and Hong Kong slipped more than 3 percent.

US markets also showed signs of strain. Futures for the S&P 500 pointed to losses of roughly $1.3 trillion in market value, while the Nasdaq 100 and Dow Jones both dropped more than two percent in early trading.

Energy markets told the clearest story of the crisis unfolding. Crude oil prices have risen about 30 percent, while Brent crude has climbed roughly 26 percent. Heating oil has surged more than 22 percent and gasoline prices have jumped 14 percent.

Analysts warn that if elevated crude prices persist, U.S. motorists could face a sharp jump in pump prices in the coming weeks.

This is absolutely insane:

US oil futures are now on track to rise +60% this month, marking their largest monthly gain in history.

This follows the +34.5% gain recorded last week, the largest weekly gain on record in data going back to 1982.

We are all witnessing history. pic.twitter.com/8cFpKg97mt

— The Kobeissi Letter (@KobeissiLetter) March 9, 2026

Strait of Hormuz Crisis Drives Energy Panic

According to the BBC, the latest surge in prices reflects fears that the Strait of Hormuz could remain effectively closed as the conflict intensifies.

Roughly one fifth of the world’s oil supply normally travels through the narrow passage linking the Persian Gulf to global markets.

Since the conflict escalated, shipping through the Strait of Hormuz has slowed dramatically as security fears spread across the region. Over the weekend, the United States and Israel launched new waves of airstrikes across Iran, targeting multiple locations including energy infrastructure. The escalation follows earlier strikes that reportedly killed Iran’s Supreme Leader and hit civilian sites, further intensifying tensions. The attacks have raised fears of prolonged disruption to oil exports from the Gulf.

Iran has also signalled a hardline stance by naming Mojtaba Khamenei as the successor to Supreme Leader Ali Khamenei, suggesting the country’s leadership is preparing for a prolonged confrontation.

Economists warn that if the disruption continues for weeks, oil prices could surge even higher.

Some forecasts suggest prices could exceed $150 per barrel if the Strait of Hormuz remains blocked through the end of March.

Adnan Mazarei of the Peterson Institute for International Economics warned that markets are beginning to accept the possibility of a long conflict. “People are realising that this won’t end quickly,” he said.

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Analysts Warn the Global Economy Cannot Function at $120 Oil

Financial researchers say the scale of the price spike is historically unusual.

The Kobeissi Letter noted that US oil futures are on track for their largest monthly gain ever recorded, rising nearly 60 percent this month alone after a record weekly surge the previous week.

Such rapid increases create serious risks for the global economy. Energy costs ripple through every sector, raising prices for transport, food production, fertilisers and industrial manufacturing.

Japan, which imports most of its energy, could face particular pressure. Higher oil prices increase import costs, weaken the yen and widen trade deficits, creating what economists describe as a dangerous economic spiral.

In simple terms, the modern global economy struggles to function when oil remains above $120 per barrel for extended periods.

And markets are now moving rapidly toward that threshold.

Political Fallout Begins to Spread

The economic shock is quickly spilling into politics. US President Donald Trump dismissed concerns about rising oil prices, describing the surge as a “small price to pay” for confronting Iran’s nuclear programme.

His comments have drawn criticism from military leaders and political figures.

Meanwhile, the diplomatic fallout is reaching Britain.

Some UK politicians argue that allowing King Charles to proceed with a planned state visit to Washington during the crisis would hand Trump a symbolic diplomatic victory while tensions remain high. Liberal Democrat leader Ed Davey has urged the government to reconsider the visit.

If the Strait of Hormuz stays closed and oil continues climbing toward $120 or higher, today’s market shock may become something much bigger. The kind of moment that economists and historians reference for decades.