Monday saw a strong decline in Asian stocks and an increase in global oil prices as the US-Israel confrontation with Iran began its fifth week. Overnight, the price of Brent crude increased by over 3% to surpass $115 (£86.77) per barrel. Later, it dropped a little to about $113, but it is still on course to record its largest monthly gain. South Korea’s Kospi ended nearly 3% lower, while Japan’s Nikkei 225 fell 2.8%.
It comes after Iran-backed Houthi rebels in Yemen joined the conflict by striking Israel over the weekend and Iran threatened to expand retaliatory strikes against universities and the homes of US and Israeli officials. In an interview with the Financial Times on Sunday, US President Donald Trump stated that he might “take the oil in Iran” and potentially capture Kharg Island, the country’s main fuel center.
Regarding Iranian defense on the island, he responded, “I don’t think they have any defense. We could take it very easily.” Trump compared the potential move to Venezuela where the US plans to control the oil industry “indefinitely” after the seizure in January of then-President Nicolás Maduro. The speaker of Iran’s parliament issued a warning over the weekend that his nation’s armed forces were “waiting for American soldiers” as an additional 3,500 US soldiers entered the Middle East.
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