Asian markets suffered a significant downturn on Monday, with oil prices surging past $100 per barrel due to ongoing disruptions in the Middle East.
Japan's Nikkei 225 index plummeted over 7%, while South Korea's Kospi dropped as much as 8%, with the latter's decline activating circuit breakers for the second time this month.
The sharp decline in Asian markets comes amid disruptions in oil production and movement, with Iran blocking the Strait of Hormuz chokepoint, a critical passage for one-third of the world's oil trade.
Japan, which relies heavily on Middle Eastern oil imports, is among the most affected countries globally, with its equities experiencing their largest decline since April 2025.
