- Share markets in Asia slipped on Monday as intensified fighting in the Gulf and Iran's claim of closing the Strait of Hormuz caused global inflation risks to resurface.
- Brent crude oil prices surged by 3.3 per cent to $78.50 a barrel, while US crude added 3.4 per cent, following a cycle of attacks and counter-attacks between Iran and the US.
- Despite Iran's declaration, US officials stated the Strait of Hormuz remained open for commercial traffic, though ship tracking data showed a significant reduction in transiting vessels.
- The escalating conflict casts doubt on a recent interim US-Iranian agreement designed to reopen the strait and conclude the war.
- The rise in oil prices pushed up bond yields and strengthened the dollar, as investors anticipated a higher chance of interest rate hikes from the Federal Reserve.
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