Asian Markets Decline as Oil Prices Surge After US Strike

Asian markets were largely down on Monday following a speech by Fed Chairman Kevin Warsh that reinforced expectations of a rate hike to combat inflation. U.S. futures also declined, with the S&P 500 and Dow Jones Industrial Average slipping 0.3%.

The market reaction was also influenced by news that U.S. forces had struck Iranian rocket launchers on the Strait of Hormuz, causing oil prices to surge about 3%. Brent crude rose 2.9% to $90.61 per barrel, while U.S. benchmark crude jumped 2.7% to $85.66 per barrel.

Stephen Innes of SPI Asset Management noted that 'the Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude.'