Brent crude jumps to $116 a barrel, Asian stocks fell sharply

Oil prices rose and stocks in Asia slumped Monday amid increasing signs of escalation of the US-Israeli war in Iran, which has led to a blockage of critical energy supplies.

Israel said it launched strikes targeting infrastructure in Tehran and other areas, and Iran retaliated. President Donald Trump is weighing whether to try a larger attack as part of efforts to open shipping routes, and 2,500 U.S. Marines and hundreds of commandos arrived in the Middle East.

Oil Rises

The price of Brent crude, the global benchmark for oil, was above $116 a barrel. On Friday, Brent settled at $112.57 — a 56% increase since the war began.

West Texas Intermediate crude, the U.S. benchmark, was around $102 a barrel. The WTI price finished Friday at $99.64, up 5.5%.

 Investors and analysts have been focused on the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas that normally carries as much as one-fifth of the world’s oil supply.

Stocks Fall

— Stocks across Asia fell sharply Monday. The Nikkei 225 in Japan was down over 4% and stocks in Korea fell about 4%. Stocks in Hong Kong and China were also lower.

— Futures on the S&P 500 pointed to a decline when stocks resume trading in the United States on Monday.

Gasoline Prices Steady

— U.S. gas prices have steadied recently to a national average of $3.98 a gallon Sunday, according to the AAA motor club. The increase has raised the cost for drivers by 34% since the war began.

— U.S. diesel prices have increased even more quickly and stood at $5.41 Sunday, up 44% since the start of the war.

This article originally appeared in The New York Times.