Global oil prices rose and shares fell sharply on Monday morning in Asia after the war between the US and Israel entered its fifth week, the BBC writes.
The price of Brent crude rose more than 3%, topping $115 a barrel, while U.S.-traded oil rose to $103 after rising about 3.5%.
Asian stock markets opened lower, with Japan's Nikkei 225 down 4.5 percent and South Korea's Kospi down 4 percent.
It comes after Yemen's Iran-backed Houthi rebels joined the conflict with attacks on Israel over the weekend, and Iran threatened to expand its retaliation against universities and the homes of US and Israeli officials.
US President Donald Trump said in an interview with the Financial Times on Sunday that he could “take the oil from Iran” and possibly capture the main fuel distribution hub on Kharg Island.
When asked about Iranian defenses on the island, he said: “I don't think they have any defenses. We could take it very easily.”
Trump compared the situation to that of Venezuela, where the US plans to control the oil industry “indefinitely” after the January kidnapping of then-president Nicolás Maduro.
Global energy markets were highly volatile after Tehran retaliated against US and Israeli attacks by threatening to attack ships trying to cross the Strait of Hormuz.
About 20 percent of the world's oil and gas supply usually passes through the narrow channel, but much of it has stagnated, driving up prices.
Energy markets expert Sean Foley of Macquarie University said he expected oil prices to rise further if the conflict did not ease.
The Houthi attacks have raised concerns that the armed group could stop energy shipments passing through the Bab al-Mandeb strait near Yemen, Foley said.
A blockade of the waterway could affect another 10 percent of the world's oil supply, “putting significant pressure on global supply chains,” Foley said.
Andrew Lipow of consultancy Lipow Oil Associates said he expects Brent crude to reach $130 a barrel in the coming weeks as threats to global energy supplies continue.
“My biggest fear is that we're going to have a general economic slowdown around the world … because consumers are simply running out of money because they're spending more on energy and food,” he said.
The price of Brent crude was around $72 a barrel on February 27, the day before the US and Israel attacked Iran.
