Global stock markets fell sharply on Monday as escalating conflict involving Iran pushed crude oil prices above $110 per barrel, triggering widespread concerns about inflation, energy supply disruptions and slower economic growth. Investors across Asia, Europe and the United States reacted nervously as the conflict threatened oil production and shipping routes in the Middle East.

Asian markets recorded some of the steepest declines. Japan’s Nikkei 225 plunged more than 7% in early trading before closing about 5% lower, while South Korea’s Kospi dropped roughly 6%. Other regional markets also fell, with Hong Kong’s Hang Seng losing about 1.4% and Taiwan’s benchmark index sliding more than 4%.

The sell-off followed a sharp surge in crude oil prices as fears grew that the conflict could disrupt production and shipping across the Persian Gulf, one of the world’s most important energy hubs. Brent crude climbed above $110 per barrel and at one point approached $115–$120, marking its highest levels in several years.

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European markets also came under pressure during early trading. Germany’s DAX fell around 2.6%, France’s CAC 40 lost roughly 2.7%, and Britain’s FTSE 100 declined about 1.9%. Futures tied to major U.S. indices—including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—also dropped more than 1%, indicating potential losses when Wall Street opens.

The turmoil comes as the widening conflict disrupts energy infrastructure and shipping routes across the region. Attacks on facilities and threats to tanker traffic have raised fears that the Strait of Hormuz, a key passage that carries roughly one-fifth of the world’s oil supply, could face significant disruption.

Analysts warn that persistently high oil prices could fuel global inflation and weigh on economic growth, particularly for energy-importing countries. Investors have increasingly moved toward safe-haven assets such as the U.S. dollar while closely watching geopolitical developments that could further affect energy supplies and financial markets worldwide.

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