Oil approaches $110 as U.S. pulls diplomats, Middle East war deepens

The US government ordered non-emergency government employees to leave Saudi Arabia after the war affecting Iran spread to the Middle East, oil prices rose above $ 110 per barrel and triggered sales in markets in Asia.

The US Embassy in Riyadh said: Monday Due to increased risks from armed conflict, terrorism, and missile and drone attacks from Yemen and Iran, non-emergency American government employees and their family members have been ordered to leave the Kingdom. This was the first such disengagement order issued by Washington in Saudi Arabia since the war began.

The move comes as Iranian authorities named Mojtaba Khamenei, son of late religious leader Ayatollah Ali Khamenei, as the country’s new religious and political authority and consolidated control over Iran’s Revolutionary Guard and other hardline groups.

Israel had previously warned that Khamenei’s successor would be a potential target, and US President Donald Trump had threatened that the new leader in Tehran would be short-lived if the decision was taken without his approval.

Trump is also reportedly gaining weight deployment of special forces While officials are trying to confirm the location of the highly enriched material stockpile, Bloomberg reported that Tehran is on the ground to seize its near-bomb uranium, Bloomberg reported.

Oil markets reacted sharply. Crude oil prices rose above $110 a barrel on Monday morning after many energy producers in the Middle East announced plans to reduce production.

West Texas Intermediate rose nearly 30%, or $27, to $117 a barrel. Global benchmark Brent rose by over 25% to $118. The last time oil prices exceeded $110 per barrel was after Russia invaded Ukraine in 2022.

This increase came after days of disruptions in the Strait of Hormuz, one of the world’s most important oil transit points. Tankers avoided the narrow waterway after Tehran threatened to attack ships trying to pass through the strait.

With shipments halted, the United Arab Emirates, Kuwait and Iraq announced that they would reduce production due to material accumulation.

US Energy Secretary Chris Wright said on Sunday that traffic through the Bosphorus would continue if Washington destroys Tehran’s ability to threaten shipping.

“The grace period that the market has been in place for much of the past week, assuming this thing doesn’t get out of control and start spreading, infecting other parts of the economy, is clearly over,” said Clayton Seigle, director of energy and geopolitics at CSIS. “We will probably have a longer period of crisis. The market … is scrambling to catch up.”

Israeli army Hit several Iranian oil Fires broke out at the facilities on Sunday and thick smoke spread over Tehran and the neighboring city of Karaj. The attacks appeared to be the first attack on the country’s energy infrastructure since the start of the war.

While Iranian drones continue to cause damage and loss of life to Gulf countries, Saudi Arabia warned that continued attacks from Tehran could further increase tensions and damage relations.now and in the future“

Shortly after oil surpassed $100 in the US on Sunday evening, Trump said: sent The rise in “short-term oil prices” was said on Truth Social to be “a very small price to pay” for eliminating Iran’s nuclear threat. “Only fools think differently!”

Stock markets in Asia fell at the open on Monday, signaling a broader regional selloff amid growing concerns about a protracted, intensifying war and a potential oil supply shock to the global economy.

It was reported that South Korea is reviewing whether to impose an upper limit on oil prices for the first time in 30 years. Yonhap News.

Australian government review of the request Facing Iranian attacks for defensive military support, Gulf countries reiterated that they would refrain from participating in offensive action against Iran.

China sent a special envoy to the Middle East last week to broker a ceasefire. Top diplomat Wang Yi reiterated Beijing’s call for an end to military action at a news conference on Sunday and expressed regret, saying the conflict was a war that “never should have happened.”