Oil prices surged past $100 as tensions with Iran escalated following the collapse of U.S.-Iran peace talks. The U.S. military is preparing a naval blockade of the Strait of Hormuz, a key shipping route where traffic has largely stalled since the start of the conflict.
President Trump ordered the blockade, further escalating tensions. The dollar rose in response to the developing situation, while U.S. equity futures slid.
Asian markets largely declined as the threat of a naval blockade injected new turmoil into financial markets. Most shipping has been stalled by Iran since the start of the war, and the situation remains cautious as markets open.
Oil prices have resumed their climb amid these developments.