Asian equity markets suffered some of their steepest losses in years on Monday as escalating conflict in the Middle East pushed oil prices above $100 a barrel and triggered a broad risk-off move across global markets.
Japan’s Nikkei 225 plunged 6.2% while South Korea’s Kospi dropped 6.3% and Australia’s S&P/ASX 200 fell 3.3%, with US futures also pointing lower ahead of the Wall Street open.
Brent crude traded near $110 and West Texas Intermediate briefly reached $111 as the Strait of Hormuz remained effectively shut and concerns grew about disruptions to Gulf energy supplies.
The geopolitical backdrop worsened after Iran fired missiles toward Israel under newly appointed Supreme Leader Ayatollah Mojtaba Khamenei, while US President Donald Trump said attacks would continue “until they surrender or, more likely, completely collapse.”
Investors moved into the US dollar as a safe haven, pushing the US Dollar Index up 0.69% to 99.67 while bond yields climbed and inflation concerns intensified due to surging energy prices.
Bitcoin fell about 1.4% to roughly $66,300 and Ether declined around 1% to near $1,950 as cryptocurrencies tracked the broader selloff in risk assets.