Asian Markets Plunge as Oil Prices Soar Amid Tightening Monetary Policy

Asian markets plummeted on Monday as oil prices surged to over $107 per barrel, prompting concerns about inflation and tighter monetary policy. The Brent crude price rose by around 3% to reach $107.18 per barrel, following a nearly 9% gain last week.

The sharp increase in oil prices comes as investors prepare for potential rate hikes from the US Federal Reserve and the Bank of Japan. Markets are pricing an 86% probability of a 25-basis-point Fed rate hike this Wednesday, following stronger-than-expected US consumer-price data.

Technology-linked shares were particularly weak, with OpenAI's decision to cancel its initial public offering (IPO) this year adding pressure on high-valued Asian tech stocks. The company cited safety and regulatory friction as reasons for the cancellation.