Asian Markets Plunge as US-Iran Tensions Escalate Oil Prices

Asian share markets plummeted on Monday as tensions between the US and Iran escalated, driving up oil prices. Brent futures surged by 2.8% to $90.60 per barrel after a series of airstrikes targeted Iranian military sites.

The conflict also pushed investors to reassess their bets on a potential US interest rate hike, with Federal Reserve Chair Kevin Warsh emphasizing the central bank's need to control inflation.

As a result, market expectations for a September rate increase jumped to 57%, sending short-term Treasury yields sharply higher and flattening the curve. Analysts now expect a bounce of 58,000 jobs in Friday's August payrolls report, which could further support the case for an early hike.