Equities tumbled as crude oil surged above $100 a barrel for the first time since 2022, with the US-Israeli war against Iran showing no sign of easing and both sides appearing set to prolong the conflict.
The dollar rose and a global bond selloff deepened. Asia’s benchmark share index dropped 5.2% — the most since April — with South Korea and Japan leading the declines.
Equity-index futures for the US and Europe slid more than 2%, indicating the selloff is set to expand to other regions.
The turmoil came as Brent crude oil jumped as much as 29% to $119.50 a barrel, adding to last week’s 28% surge, as the conflict entered a second week.
West Texas Intermediate rose 31%. Major oil producers also began curbing output and traffic through the Strait of Hormuz was effectively halted.
Both sides appeared to be digging in for a potentially lengthy conflict. Iran named the son of the late Ayatollah Ali Khamenei as its new supreme leader, while President Donald Trump said higher oil prices were a “very small price to pay” for safety and peace.
