CNBC Daily Open: Oil storms past $100 for first time since 2022

Crude oil finally did what analysts have been warning about in the past week: it blew past $100 per barrel on Sunday as Iran continues its closure of the critical Strait of Hormuz. It was the first time crude crossed the $100 mark since Russia invaded Ukraine in 2022. By early Monday, West Texas Intermediate was off highs but still up 12% at $102 a barrel. Global benchmark Brent was trading around 15% higher at $106.

Markets reacted swiftly, with Dow futures currently down almost 900 points. Meanwhile, S&P 500 futures and Nasdaq 100 futures are around 1.6% and 1.7% lower, respectively, although off earlier lows. Asia markets also sank Monday, but pared losses slightly after reports that Saudi Arabia was offering to release crude oil onto the market.

As oil prices started spiking, U.S. President Donald Trump said on Truth Social that "short term oil prices" were "a very small price to pay". Whether the spike proves temporary remains uncertain as the war shows few signs of easing. Iran named Ayatollah Ali Khamenei's son, Mojtaba, its new supreme leader, according to reports. On Monday, the U.S. embassy in Riyadh also issued its first departure order for non-emergency government employees to leave Saudi Arabia.

For now, U.S. Energy Secretary Chris Wright appears cautiously optimistic, saying Sunday "we're not too long away" before traffic through the Strait will resume, after the U.S. destroyed Iran's ability to threaten tankers. Wright told CNN in an interview that the "worst case" is that the Strait closure lasts  "a few weeks," and "not months."

The geopolitical turmoil is testing global diplomacy, as Trump is set to meet with Chinese President Xi Jinping from March 31 to April 2, amid their differences over the war in Iran and trade tariffs. On Sunday, Beijing's top diplomat Wang Yi signaled preparations were underway for the meeting, and repeated the country's calls for a ceasefire, saying that "this is a war that should not have happened," and "does no one any good."

Meanwhile, the G7 countries are also scheduled to convene an emergency meeting in the coming days to address the Middle East crisis. The group — comprising the United States, Canada, France, Germany, Italy, Japan and the United Kingdom — has come under strain during both of U.S. President Donald Trump's tenures. The group is reportedly discussing a joint release of emergency oil reserves, according to the Financial Times.

Why the world's top-performing stock market in 2025 is seeing historic volatility

South Korea's stock market has swung wildly in recent days, as investors reassess risks from the escalating war in the Middle East.

While the global risk-off mood has played a major role, experts said the Korean market's concentration in two memory giants and its sensitivity to energy shocks have made it particularly vulnerable to sharp swings.

Another factor amplifying the market's moves is South Korea's large base of retail investors and its active derivatives market, according to market veterans.

— Lee Ying Shan