Oil surges nearly 4% as Iran fires missiles at Israel; Asian stocks plunge amid fears of wider West Asia war

Global oil prices jumped nearly 4% on Monday following Iran’s missile attacks on Israel, the first direct strike since an April ceasefire. Brent crude futures rose $3.08 to $96.17 per barrel, while US WTI crude climbed $3.15 to $93.69, as markets priced in higher geopolitical risks. The escalation came after Iran retaliated against Israeli strikes in Lebanon’s southern suburbs, targeting Hezbollah strongholds, and raised fears of a wider regional conflict. The missile exchange triggered a sell-off in Asian markets, with South Korea’s KOSPI plunging as much as 8% and Japan’s Nikkei 225 dropping around 3%. Investors fled to safe-haven assets, including energy markets, amid concerns that prolonged hostilities could disrupt oil supplies or threaten critical shipping routes in West Asia, which accounts for nearly a third of global seaborne oil trade. US President Donald Trump urged restraint, stating he believed Washington was close to a final deal with Iran. He reportedly planned to call Israeli Prime Minister Benjamin Netanyahu to warn against further escalation, fearing it could destabilize diplomatic efforts. The tensions follow a sharp correction in US technology stocks, particularly semiconductors, as investors adjusted expectations for Federal Reserve rate cuts. Wall Street also declined, with the Dow Jones falling 1%, the S&P 500 dropping 2.4%, and the Nasdaq Composite tumbling 4%. The sell-off was led by high-growth tech stocks, including Broadcom, after stronger-than-expected US employment data reduced hopes for near-term Fed rate reductions. The combined pressures of geopolitical risks and economic uncertainty deepened market volatility.