Global financial markets came under heavy pressure on Monday as oil prices surged to their highest levels since 2022, triggering a broad sell-off in equities across Asia and raising fears of a fresh inflation shock to the global economy.
Asian stock markets plunged after crude prices spiked sharply amid growing concerns about supply disruptions from the Middle East, where the United States-Israel war with Iran entered its second week with no signs of easing.
Brent crude and US benchmark West Texas Intermediate both jumped above $114 per barrel in early trading, marking gains of more than 20% from Friday’s close.
Oil surges as supply disruptions intensify, with major producers including Iraq, Kuwait and the United Arab Emirates cutting oil output as storage tanks fill due to the inability to export crude.
Analysts warned that the disruption is no longer just a geopolitical shock but a direct constraint on energy flows, with the impact spreading across the entire energy supply chain.
Asian equities plunged amid inflation fears, with Japan’s Nikkei 225 dropping more than 7% in early trading, while South Korea’s Kospi plunged over 8%.
The sell-off was also expected to spread to Western markets, with futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all down more than 2%.
Investors shifted toward safer assets, pushing the US dollar higher against major currencies.
