Crude oil prices spiked sharply Monday morning as global markets reacted to escalating tensions in the Middle East following US and Israeli attacks on Iran.

The surge in oil sent shockwaves through stock markets, with investors bracing for volatility in Asia and the United States.

Brent crude, the international benchmark, jumped as much as 13 percent in early Asian trading before settling to a roughly 5 percent increase.

As of midday Tokyo time, Brent traded at $76.48 per barrel, reflecting concerns over supply disruptions stemming from regional instability.

Asian stock markets slide

Asian equities opened lower amid heightened uncertainty.

Hong Kong’s Hang Seng Index dropped about 2 percent.
Japan’s Nikkei 225 fell roughly 1.5 percent.

Investors reacted cautiously to the geopolitical risks, which threaten both energy supply chains and broader economic stability.

US stock futures signal volatility

Overnight futures for US markets reflected the same cautious sentiment.

S&P 500 futures declined about 0.7 percent.
Nasdaq Composite futures were down around 0.7 percent as well.

Traders are expecting a choppy session on Wall Street, with market direction likely tied closely to developments in the Middle East.

Market implications

The sudden spike in oil prices and declines in equity markets highlight the immediate impact of geopolitical conflicts on global financial markets.

Investors are closely monitoring energy supply risks, potential sanctions, and regional escalation, all of which could further affect commodities and equities worldwide.