Global oil markets opened the week with an abrupt surge in prices, pushing crude benchmarks above the symbolic USD 100 per barrel mark for the first time since the early stages of the war in Ukraine in 2022. The U.S. benchmark West Texas Intermediate (WTI) jumped roughly 20 percent at the start of trading on Sunday, reaching USD 109.17 per barrel. At the same time, international benchmark Brent crude climbed about 19 percent to USD 110.35 per barrel.

The sharp rally followed heightened geopolitical tensions in the Middle East, particularly the appointment of Mojtaba Khamenei as Iran's new supreme leader. Financial markets interpreted the development as a sign that regional instability could continue, raising concerns about shipping routes and energy supplies. Oil prices had already been rising in the previous week due to the ongoing conflict, but the latest developments accelerated the increase significantly.

The situation escalated further on Monday, when Brent crude temporarily moved above USD 115 per barrel during trading, marking an overall rise of about 25 percent within a short period. Analysts described the surge as unusually rapid, warning that the market was reacting to what could become the most serious oil supply shock since the 1970s.

A major factor behind the spike is the disruption to the Strait of Hormuz, a strategic maritime corridor through which roughly one-fifth of the world's oil and liquefied natural gas normally passes. With the passage effectively blocked, several countries in the Middle East have struggled to export crude oil. As storage facilities quickly fill, producers are reportedly reducing output because shipments cannot leave the region.

Infrastructure damage across the region has added to the supply concerns. Drone and missile strikes targeting oil facilities have increased fears of prolonged disruption. Iraq's production from its main southern oilfields, for example, has reportedly fallen by around 70 percent because exports through the Strait of Hormuz have been halted.

The rising energy prices are already affecting economies worldwide. In Australia, motorists have begun to see the impact at petrol stations, with fuel prices climbing to as much as 2.42 Australian dollars per litre in some areas. Wholesalers in certain regions have also limited supplies amid the volatile market conditions.

Economic analysts warn that the continued rise in oil prices could have broader consequences for inflation. According to economists, higher fuel costs may push consumer price growth significantly higher if the current situation persists.

In response to the market turmoil, U.S. President Donald Trump commented on social media that the increase in oil prices would likely be temporary. He described the surge as a ?very small price to pay? in exchange for what he called 'safety and peace,? while observers continue to watch how Washington may respond to the unfolding energy crisis.

Governments in Asia have already begun preparing emergency economic measures. In South Korea, President Lee Jae Myung announced that the country will introduce a cap on domestic fuel prices to protect households and businesses from the sudden increase in global oil costs. It will be the first time in nearly three decades that such a mechanism is applied in the country.

Speaking during an emergency meeting focused on the Middle East conflict and its economic impact, Lee said the government would quickly implement a maximum price system for petroleum products that have recently experienced steep increases. He stressed that the crisis poses a serious challenge for South Korea, whose economy relies heavily on global trade and imported energy, much of it originating from the Middle East.

The South Korean government is also exploring alternative energy supply routes that do not rely on shipments through the Strait of Hormuz. At the same time, authorities are prepared to expand a 100 trillion won, or nearly billion, market stabilisation programme if volatility in financial markets continues.

Financial markets in Seoul reacted sharply to the geopolitical developments. South Korean shares plunged by about 8 percent on Monday, triggering market circuit breakers for the second time this month. Meanwhile, the national currency weakened significantly, briefly approaching the psychological level of 1,500 won per U.S. dollar before recovering slightly after the president's remarks.

The turbulence in energy markets is being closely watched in Europe as well, including in Bulgaria, where rising global oil prices typically translate into higher fuel costs at petrol stations. Although Bulgaria does not directly depend on Middle Eastern crude in the same way as some Asian economies, local fuel prices remain strongly tied to international benchmarks such as Brent. As a result, Bulgarian consumers and businesses could also feel the impact if the upward trend in oil prices continues in the coming weeks.