Asian shares fell sharply on Monday as renewed US-Iran fighting in the Gulf sent oil prices higher and heightened concern over global inflation. Japan’s Nikkei dropped 2.1 per cent, while Nasdaq futures were down 0.5 per cent.
Brent crude rose above 90 US dollars a barrel after US forces struck Iranian rocket launchers on Larak island in the Strait of Hormuz. Reuters reported that Brent futures were up 2.52 per cent at 90.32 dollars a barrel, while US West Texas Intermediate crude gained 2.41 per cent to 85.41 dollars.
The US military said the launchers were being prepared to fire rockets and sea mines into the strait, a vital route for energy shipments. American forces had completed a mission to clear mines from the waterway’s international shipping lanes the previous week. ([apnews.com](https://apnews.com/article/6b098da673ac3161a266ee459d5eff44?utm_source=openai))
Iran vowed to retaliate for the strike, which was reported by Iranian state-linked media to have killed and wounded several people. The attack was the first known US military action against Iran since late July, according to Reuters. ([apnews.com](https://apnews.com/article/6b098da673ac3161a266ee459d5eff44?utm_source=openai))
The prospect of further disruption around the Strait of Hormuz, through which a significant share of the world’s oil is transported, weighed on investor sentiment across the region. Higher energy costs also added to pressure on bond markets, where yields have remained elevated.
