Oil prices jump over 4% as US-Iran tensions flare

Oil prices surged more than four percent on Monday after renewed fighting between the United States and Iran reignited fears over supply disruptions in the Strait of Hormuz, while most Asian stock markets fell as technology shares extended recent losses.

Crude prices climbed sharply after fresh military exchanges threatened the already fragile truce between Washington and Tehran, raising concerns over the security of one of the world‍‍`s most important energy shipping routes.

The latest escalation followed US strikes on Sunday after renewed clashes in the Gulf, while Iran claimed the Strait of Hormuz would remain closed until what it described as US intervention in the region ended. The US military, however, insisted the waterway remained open to commercial shipping.

Brent crude and West Texas Intermediate each gained more than four percent during trading, reviving worries that higher energy prices could keep global inflation elevated and complicate interest-rate decisions by central banks.

Market analysts said the renewed conflict has restored a geopolitical risk premium to oil, although they believe prices are unlikely to revisit the highs seen earlier in the year unless the crisis worsens significantly.

Asian equity markets also came under pressure, with South Korea leading regional declines as technology stocks faced another round of heavy selling.

Seoul‍‍`s Kospi index dropped around five percent, dragged down by a steep decline in chipmaker SK hynix, while Samsung Electronics also posted sharp losses.

Japanese technology shares weakened as well, with semiconductor-related companies Advantest and Tokyo Electron trading lower. Markets in Tokyo, Shanghai, Singapore, Wellington and Jakarta also finished in negative territory, although Hong Kong, Taipei and Manila bucked the regional trend.

The US dollar strengthened as investors sought safer assets and increased bets that persistent inflation could prompt the Federal Reserve to raise interest rates later this year.

Investors are now turning their attention to the upcoming corporate earnings season, with major technology companies including TSMC and ASML set to report results this week. Several leading US banks, including JPMorgan Chase, Bank of America and Goldman Sachs, are also scheduled to release earnings, providing fresh clues about the global economic outlook.