Oil Price Surge Weighs on Global Stock Markets Amid US-Iran Tensions

Global stock markets declined on Monday as tensions between the US and Iran continued to escalate, driving up oil prices.

Brent crude futures rose by as much as 3% to $107.16 a barrel, with oil prices now almost 50% higher than their level before the war began in late February.

US President Donald Trump rejected an Iranian proposal over the weekend to reopen the Strait of Hormuz, saying Tehran was desperate for an agreement.

Central banks have responded to rising energy costs by increasing interest rates, with the Reserve Bank of Australia expected to be the next to tighten policy on Tuesday.