Global Oil Surges to $115 Amid Escalating Middle East Conflict 📈

• Energy Market Impact: Global oil prices jumped as the US-Israel-Iran conflict entered its fifth week. Brent crude rose over 3% to above US$ 115 per barrel, while US-traded oil climbed to US$ 101.62 (+2%). Brent is currently on track for its largest monthly gain on record. • Stock Market Slump: Major Asian indices saw sharp declines following weekend escalations. Japan’s Nikkei 225 dropped 2.8%, and South Korea’s KOSPI fell nearly 3%. • Geopolitical Risks: Tensions spiked after Houthi rebels struck Israel and Iran threatened retaliatory strikes. US President Trump indicated potential plans to seize Iran’s Kharg Island fuel hub, comparing the strategy to recent US actions in Venezuela. • Sri Lankan Context: As a net oil importer, the surge in Brent crude prices poses significant risks to Sri Lanka's energy costs and transportation sector. Prolonged high prices may exert pressure on foreign exchange reserves and domestic inflation. • Military Escalation: An additional 3,500 US troops arrived in the Middle East as Iran’s Parliament warned of readiness for direct confrontation.