FX.co ★ Asian Stocks Drop on Mideast Jitters

Asian equity markets fell on Monday as the conflict in the Middle East entered its fifth week with no signs of de-escalation. Tensions intensified after President Donald Trump said the U.S. could “take the oil in Iran,” and Iran-backed Houthi militants in Yemen expanded the conflict by targeting Israel over the weekend. The resulting surge in oil prices stemming from the Iran war has heightened concerns about inflation and weaker global growth, reinforcing expectations that major central banks may maintain a hawkish policy stance this year. Japan and South Korea saw share prices drop more than 3%, while markets in Australia, China, and Hong Kong also came under significant pressure.