World stock markets plunge and oil soars due to Middle East war
World stock markets plunged on Monday and oil prices soared 30%. Photo: iStock
TL;DR
- Global stock markets, including Seoul, Tokyo, Paris, Frankfurt, London, Madrid, and Milan, experienced significant drops.
- Oil prices surged dramatically, with WTI crude rising 15.51% to $104.96 and briefly hitting $119.48, while Brent crude rose 17.42% to $108.82 after exceeding $119.
- Natural gas futures on the Dutch TTF also saw a 30% increase.
- Production cuts were reported in Iraq, UAE, and Kuwait due to attacks.
- The G7 is considering releasing strategic oil reserves to control price escalation.
- Traffic in the Strait of Hormuz, a major oil and gas transit route, has been suspended since the war's outbreak.
- Analysts warn that oil prices above $100 act as a tax on the global economy.
- US President Donald Trump downplayed the oil price increase, prioritizing the elimination of Iran's nuclear threat.