Fed Rate Hike Fears Send Asian Markets Reeling Amid US-Iran Tensions

Asian shares and US futures declined on Monday as investors anticipated a potential interest rate hike by the US Federal Reserve. The Fed's Chairman, Kevin Warsh, reinforced this expectation in his speech at an annual economic symposium in Jackson Hole, Wyoming.

The move sent oil prices surging 3% after US forces struck Iranian rocket launchers on the Strait of Hormuz. Brent crude, the international standard, jumped to $90.61 per barrel, while U.S. benchmark crude oil rose to $85.66 per barrel.

Markets in Asia fell, with Japan's Nikkei 225 losing 0.4% and South Korea's Kospi declining 0.5%. Hong Kong's Hang Seng also lost 0.4%, while the Shanghai Composite index gained 0.4%. Australia's S&P/ASX 200 declined 0.2%, Taiwan's Taiex fell 0.4%, and India's Sensex slipped 0.6%.

The US dollar fell to 159.85 Japanese yen from 160.10 yen, while the euro rose to $1.1588 from $1.1580.