Asian Markets Slide as Oil Prices Soar After US Strike on Iran

Markets in Asia and U.S. futures declined on expectations that the U.S. Federal Reserve may raise interest rates soon.

The Trump administration's decision to strike Iranian rocket launchers on the Strait of Hormuz led to a surge in oil prices, with Brent crude up 2.9% at $90.61 per barrel and U.S. benchmark crude jumping 2.7% to $85.66 per barrel.

Stephen Innes of SPI Asset Management commented that the Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude, but Sunday's events reminded them that 'quiet in the Strait of Hormuz is not the same as peace.'

The Fed Chairman Kevin Warsh's speech at an annual economic symposium reinforced expectations of rate hikes to bring down inflation.