Asian stocks mixed as oil prices surge on Iran tensions
Asian stocks were mixed and US futures slid on Monday as oil prices surged.
The spike came after US airstrikes on Iranian targets, prompting Iranian retaliation and leading many vessels and traders to suspend transits through the Strait of Hormuz—a key route for global oil and gas.
Full closure could send oil prices soaring
The Strait of Hormuz handles 20% of the world's oil, and about 84% of the oil and 83% of the LNG transiting it are destined for Asian markets.
With insurers pulling out and major oil companies pausing shipments, analysts say a full closure could send oil prices soaring, with some warning prices could rise sharply.
That means higher costs everywhere, from transport to your daily essentials.
Insurance rates rose by 50%
After Iran warned vessels not to transit the strait, insurance rates rose by as much as 50%, disrupting many transits.
Oil hit $82.37 per barrel on Sunday, while stock markets dipped and investors rushed to safer bets like gold—showing just how quickly global events can shake up everyday life.