Global markets came under pressure on Monday after Iran launched multiple rounds of missiles at Israel, escalating tensions in West Asia and raising concerns over potential disruptions to energy supplies.
Crude oil prices surged around 4 per cent following the attack, which Iran described as retaliation for Israel's actions in Lebanon. The escalation effectively shattered the fragile ceasefire that had been in place since April.
West Texas Intermediate (WTI) crude climbed above $93 per barrel, while Brent crude rose beyond $96 per barrel as traders reacted to the possibility of a wider regional conflict, per a report by News18.
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Asian markets witness sharp selloff
The renewed geopolitical uncertainty, combined with concerns over the global technology sector, triggered heavy selling across Asian equities.
South Korea's Kospi emerged as the worst-performing major index during the session, tumbling as much as 8 per cent to 7,442 before recovering some losses to trade around 7,568, per News18.
Japan's Nikkei 225 also faced strong pressure, falling about 3 per cent, or roughly 3,000 points intraday, to 63,649 amid a broad decline in technology-related stocks.
The dollar index hovered around the 100 mark after gaining more than 1 per cent last week, supported by signs of continued strength in the US economy.
Trump pushes diplomacy despite escalation
Despite the latest tensions, US President Donald Trump expressed optimism about ongoing negotiations with Tehran.
According to Axios, Trump planned to personally call Israeli Prime Minister Benjamin Netanyahu and urge restraint after Iran's missile attack on Sunday, the first such strike since the April ceasefire.
Trump has warned against further escalation, arguing that retaliatory actions could undermine delicate diplomatic efforts between Washington and Tehran.
Wall Street loses nearly $2 trillion
The market turmoil followed a difficult session on Wall Street on Friday, where US stocks suffered a broad selloff.
The Dow Jones Industrial Average fell 1 per cent, while the S&P 500 dropped 2.4 per cent. The Nasdaq Composite recorded the steepest decline, plunging 4 per cent.
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Technology giants within the "Magnificent Seven" group, including Nvidia, Alphabet and Meta Platforms, all ended lower. Broadcom fell nearly 7 per cent after reporting results that disappointed investors.
Adding to market concerns, US jobs data showed employers added 172,000 jobs in May, far exceeding expectations of 80,000, reinforcing expectations that interest rates could remain elevated for longer.
