Brent crude, the international benchmark, surged more than 20 percent on Sunday, peaking above $114 a barrel, as fears grew over prolonged disruptions to global energy supplies.

After a slight retreat, the benchmark was trading around $107.50 as of 02:30 GMT on Monday.

This spike marks the first time oil has crossed $100 per barrel since Russia's 2022 invasion of Ukraine.

US President Donald Trump, who highlighted cost-of-living concerns in his 2024 campaign, downplayed the price hike.

“Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace,” Trump said in a post on Truth Social.

US Secretary of Energy Chris Wright also dismissed the prospect of rising energy costs on Sunday, telling CBS News’ Face the Nation that any increase in gas station prices would be “temporary”.

Crude oil prices have risen about 50 percent since the US and Israeli regime launched joint assaults on Iran on February 28.

In retaliation, Iran has effectively halted navigation through the Strait of Hormuz, which is approximately one-fifth of the world's oil supply.

Iraq, the United Arab Emirates, and Kuwait, among the top producers in the Organization of the Petroleum Exporting Countries (OPEC), have cut production due to accumulating inventories with no export route because of the waterway's near closure.

Attacks on regional energy production facilities have further endangered supplies.

On Saturday, the Israeli regime carried out airstrikes on Iran's oil infrastructure for the first time since the conflict erupted.

The airstrikes targeted four oil storage facilities and an oil export terminal in Tehran and Alborz province.

Iran’s IRGC on Sunday pledged to hit energy sites across the region in retaliation, warning that oil could rise to $200 a barrel if the US and Israeli regime “continue this game”.

Meanwhile, Asian stocks plummeted sharply on Monday morning, as investors braced for the impact of higher energy costs.

Japan’s Nikkei 225 fell more than 7 percent in early trading, while South Korea’s KOSPI dropped over 8 percent.

In Hong Kong, the Hang Seng Index declined by nearly 3 percent.

US stock futures, traded outside regular hours, also saw significant drops.

Futures tied to Wall Street’s benchmark S&P 500 slid by 1.7 percent, while those for the tech-heavy Nasdaq Composite fell by 1.90 percent.

Although Trump administration officials have claimed the war will end in weeks, the risk of sustained disruptions to global energy supplies has sparked concerns about higher inflation and slower economic growth.

The International Monetary Fund has estimated that every sustained 10 percent rise in oil prices results in a 0.4 percent increase in inflation and a 0.15 percent reduction in global economic growth.

“If the shock proves short-lived, the global economy can quickly recover,” Mike O’Rourke, chief market strategist at JonesTrading, told Al Jazeera.

“If oil remains at these levels for several weeks, it will be a major global headwind. Thus far, markets have underestimated the risks related to the conflict in Iran.”

In a related development, in an interview published by The Financial Times on Friday, Qatari Minister of Energy Saad al-Kaabi warned that all producers in the region may soon have to halt output and that prices could hit $150 a barrel.

“Everybody that has not called for force majeure we expect will do so in the next few days that this continues,” Al-Kaabi told the newspaper, adding “All exporters in the [Persian] Gulf region will have to call force majeure.”