Global stock markets are crashing and oil just hit $114 a barrel, but Trump told Americans facing high pump prices it’s a “small price to pay”

Global stock markets are falling sharply and oil prices have jumped to $114 a barrel, pushing G7 nations to hold an emergency meeting. This is happening as President Trump tells Americans dealing with high fuel prices that it is just a “small price to pay.” The trigger behind all of this is the escalating US-Israeli war with Iran.

Finance ministers from leading industrialized countries, including UK Chancellor Rachel Reeves, are meeting on Monday to assess the economic damage. The main concern is that the conflict could seriously disrupt energy supplies, especially through the Strait of Hormuz, a critical oil shipping route. Traffic through this passage, which normally handles about a fifth of the world’s oil supply, has almost completely stopped since the war began about a week ago.

BBC reports, oil prices have swung sharply as a result. Brent crude, a global benchmark, jumped more than 25% at one point on Monday, hitting nearly $120 a barrel before settling around $109. US West Texas Intermediate (WTI) crude traded at about $104 a barrel. These price rises are expected to push up costs for consumers and businesses alike.

Stock market losses are spreading fast as the Iran conflict shows no signs of ending soon

Stock markets around the world have taken heavy losses. Japan’s Nikkei 225 index fell over 7% before closing down 5.2%. South Korea’s Kospi index dropped more than 8%, triggering a 20-minute trading halt to stop panic selling, before closing down 6%. The UK’s FTSE 100 also opened down 1.5%.

The G7 meeting is expected to discuss releasing oil from national reserves and coordinating through the International Energy Agency. However, experts see this as a short-term fix rather than a lasting solution. Trump has made clear that the war ends only with Iran’s full surrender, with officials warning that this stance could mean a much longer conflict ahead.

The conflict is also getting more complicated. Over the weekend, the US and Israel launched fresh airstrikes across Iran, hitting targets including oil depots. Iran also announced on Sunday that Mojtaba Khamenei would succeed his father, Ali Khamenei, as Supreme Leader, suggesting that hardliners remain firmly in control.

Adnan Mazarei from the Peterson Institute for International Economics said the oil price surge is not surprising, noting that production has halted in some Gulf countries. He said, “People are realizing that this won’t end quickly,” and added that the US’s stated objectives are “becoming more unrealistic.”

President Trump addressed the rising fuel prices on Sunday through his Truth Social platform, posting: “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. ONLY FOOLS WOULD THINK DIFFERENTLY!”

Meanwhile, Trump’s recent address to Latin American leaders drew attention for other reasons, with Marco Rubio making the moment awkward almost immediately. His energy secretary also told broadcasters that Israel, not the US, was targeting Iran’s energy infrastructure, in an apparent attempt to ease concerns about rising domestic fuel costs.