Turbulent Markets Amid Escalating U.S.-Iran Tensions

Share markets across Asia experienced sharp declines on Monday as tensions between the United States and Iran intensified, with escalating threats and ongoing conflicts involving Israel contributing to volatility in oil prices and bond yields.

The Iranian government threatened to target its Gulf neighbors' energy and water infrastructure following a statement by U.S. President Donald Trump, who warned Iran had two days to reopen the Strait of Hormuz. Oil prices reacted, with Brent crude rising to $112.89 per barrel.

Amid concerns over a prolonged conflict and disrupted energy supplies, financial markets have seen a shift away from monetary easing expectations, affecting bond yields and corporate profit projections. The U.S. dollar has gained as a result, benefiting from heightened market volatility.