People play football at Higashi-Ogishima Higashi Park, as energy storage tanks are seen near an oil refinery in the Keihin Industrial Zone, a major industrial belt of Tokyo Bay, in Kawasaki city on March 15, 2026. (Photo by Philip FONG / AFP)
Oil prices jumped further above $100 Monday and Asian stocks mostly fell as the Iran war moved into a third week with both sides showing no sign of backing down and diplomats trying to ensure safe passage for tankers through the crucial Strait of Hormuz.
Crude shot up in the opening minutes after the U.S. president said at the weekend that forces struck military targets on Kharg Island, a scrubby stretch of land in the Gulf that handles almost all of Iran's oil exports.
He also warned attacks could expand to energy infrastructure if the Islamic republic interferes with transit through Hormuz, which has been effectively closed since the U.S.-Israel operations began on February 28.
Iran's Fars news agency reported soon after that no oil infrastructure was damaged in strikes.
Trump urged other countries to send warships to keep the waterway open but offered no specifics or commitments from the U.S. side, saying he hoped China, France, Japan, South Korea and the UK would take part.
He later wrote Saturday in a Truth Social post: "The Countries of the World that receive Oil through the Hormuz Strait must take care of that passage, and we will help — A LOT!
"This should have always been a team effort, and now it will be."
However, Japan said Monday it was "not at the moment considering issuing a maritime security operation", while Australia announced it would not send any navy ships to the region.
Trump said Tehran wanted a deal to end the fighting, but that he was not prepared to make one on current terms, without giving further details.
Iran's Foreign Minister Abbas Araghchi said his country was not interested in talks with Washington.
"We don't see any reason why we should talk with Americans, because we were talking with them when they decided to attack us," he told CBS's "Face The Nation" in an interview aired Sunday.
"We never asked for a ceasefire, and we have never asked even for negotiation," he added.
However, he did say he was ready to speak to countries "who want to talk to us about the safe passage of their vessels".
"I cannot mention any country in particular, but we have been approached by a number of countries" seeking such safe passage, Araghchi said.
The two sides continued to exchange fire Monday, with Saudi Arabia saying it had intercepted more than 60 drones since midnight, while flights were temporarily suspended at Dubai's airport after a "drone-related incident" sparked a fire nearby.
Araghchi described Israeli strikes on Tehran fuel depots as "ecocide" owing to the long-term risks to residents' health.
Traders hoping for an early end to the conflict were left disappointed after Trump's top economics adviser Kevin Hassett said the Pentagon estimates it could take up to six weeks, though the operation was ahead of schedule.
Both main crude contracts advanced, with Brent up around three percent to as high as $106.50 before paring the gains to about $104, while West Texas Intermediate climbed more than two percent to top $100.
The rise came as Japan said it was beginning the release of its strategic oil reserves after the International Energy Agency indicated earlier that the release would begin in Asia and Oceania before other regions.
IEA members agreed last week to release a record 400 million barrels from stockpiles to cushion the surge in prices caused by the war.
With worries growing about a possible energy crisis that could hammer the global economy, equity markets remained under pressure.
Tokyo, Shanghai, Sydney, Wellington, Taipei, Manila, Mumbai, Bangkok and Jakarta were all down, though Hong Kong, Seoul and Singapore rose.
London, Frankfurt and Paris rose at the open.
Adding to economic concerns was data showing Friday that fourth-quarter U.S. gross domestic product expanded 0.7 percent, much slower than the initial reading of 1.4 percent.
And delayed figures showed the Federal Reserve's preferred inflation gauge dipped to 2.8 percent in January before energy prices shot higher.
Also in view this week are policy meetings at seven major central banks including the Fed, Bank of England and the European Central Bank.
While they are expected to stand pat on interest rates, any remarks on the impact of the war on their respective economies will be closely followed.
