On Monday, oil prices in Asia rose sharply while major stock markets suffered steep declines, driven by escalating conflict between the United States, Israel, and Iran. Brent crude climbed more than one percent to exceed 113.40 dollars per barrel. Japan’s Nikkei index fell 3.5 percent, and South Korea’s Kospi dropped 6.5 percent, reflecting investor anxiety over regional instability.

The turmoil followed warnings from Donald Trump on Saturday that he would destroy Iran’s power plants if the Strait of Hormuz was not reopened. Iran responded that any such attack would trigger retaliatory strikes on key regional infrastructure. Energy consultancy Wood Mackenzie’s chairman and chief analyst Simon Flowers told the BBC that markets were watching closely to see whether these threats would be carried out.

Flowers added that a US strike on Iranian infrastructure would intensify the war further, prompting possible Iranian counterattacks similar to those seen in recent weeks. The heightened uncertainty has left energy and financial markets on edge across Asia.