Oil prices surged amid escalating conflict in the Middle East, with Brent crude reaching US$116.43 a barrel – poised for a record monthly gain. The increase follows the entry of Iran-backed Houthi militants in Yemen into the conflict, after they struck Israel over the weekend.
Concerns are growing that the widening war, and increasing escalation involving Iran, could disrupt critical energy supplies and cause further chaos for energy markets. This has fueled fears of a major energy crisis, potentially the largest in decades.
Asian equities fell as investors digested the situation, worried the conflict could slow global economic growth. The possibility of further supply disruptions is driving crude prices higher.