A dramatic oil prices surge Iran conflict scenario rattled global markets on Monday, as crude jumped more than $4 a barrel amid renewed fighting between Israel and Iran. At the same time, stock markets around the world slumped, still reeling from Wall Street’s worst session since October.

Stocks Slide Across the Globe

The sell-off was broad and severe. South Korea’s Kospi led the global retreat, plunging 8.3% on heavy selling of technology shares — extending the losses that, on Friday, had handed the S&P 500 its biggest single-day drop in months.

U.S. futures painted a mixed picture early Monday. The future for the S&P 500 edged up 0.2%, while the future for the Dow Jones Industrial Average slipped 0.3%.

Oil Spikes on Renewed Strikes

The surge in oil prices came as Israel launched airstrikes early Monday, targeting central and western Iran in response to missile fire. Iranian state television reported the sound of explosions in Isfahan, Tabriz, and Tehran, without offering further details.

The escalation has serious implications for global energy supplies. The ongoing U.S. war with Iran has essentially blocked crude oil shipments from passing through the critical Strait of Hormuz. The fresh attacks also further strain diplomatic efforts, coming after American and Iranian negotiators reached a tentative deal last week to extend their ceasefire — an agreement that has yet to be finalized.

The market response was immediate:

• Brent crude, the international standard, jumped $4.60 to $97.69 a barrel.
• Benchmark U.S. crude surged $4.13 to $94.67 a barrel.

A Closer Look at Asian Markets

The damage across Asia was extensive during the region’s trading day:

• South Korea: The Kospi slipped 8.3% to 7,484.41, dragged down by Samsung Electronics — the country’s biggest company — which dropped 10.2%. SK Hynix declined 7.7%.
• Japan: The Nikkei 225 fell 3.9% to finish at 64,024.60. Adding to the gloom, the Japanese government revised its first-quarter annualized economic growth rate down to 1.8%, from an earlier estimate of 2.1%.
• Taiwan: The Taiex lost 3.5%.
• Hong Kong: The Hang Seng fell 1.3% to 24,642.33.
• China: The Shanghai Composite shed 1.7% to 3,959.34.

Markets in Australia were closed for the King’s Birthday holiday.

Europe Opens Lower

The downbeat mood carried into early European trading. France’s CAC 40 fell 0.7% to 8,161.42, while the German DAX dipped 0.8% to 24,552.77. Britain’s FTSE 100 shed 0.4% to 10,331.24.

Wall Street’s Painful Friday

The turmoil traces back to a brutal end to last week on Wall Street. Friday marked the biggest one-day drop for U.S. markets since October 10, when the Trump administration threatened to impose a 100% tariff on imported goods from China.

The S&P 500 sank 2.6% after a strong jobs report raised expectations that the Federal Reserve could lift interest rates this year. That outlook only deepened sentiment already darkened by fears that the rally in technology shares — fueled by the boom in artificial intelligence investment — may be coming to an end. The Dow Jones Industrial Average fell 1.4%, while the Nasdaq composite slumped 4.2%.

Currency Movements

In currency trading early Monday, movements were relatively modest. The U.S. dollar inched down to 160.23 Japanese yen from 160.25 yen, while the euro rose to $1.1521 from $1.1515.

What Lies Ahead

With geopolitical tensions in the Middle East flaring, oil prices climbing, and investors increasingly nervous about both interest rates and stretched tech valuations, markets appear braced for continued volatility. The combination of a fragile, unfinalized ceasefire and disrupted oil flows through the Strait of Hormuz means energy markets in particular will remain highly sensitive to developments in the days ahead.