Oil Prices Surge as Gulf Tensions Escalate, Asia Markets Dip

Asia's share markets took a hit on Monday as tensions in the Gulf escalated and Iran claimed to have closed the Strait of Hormuz, sparking a surge in oil prices.

Oil prices jumped with Brent crude climbing 4.1% to $79.11 a barrel and US crude adding 4.1% to $74.37 a barrel.

This rise in oil pushed up inflation risks globally, but the Federal Reserve's interest rate hike odds narrowed with the dollar rising along with bond yields.

The Fed fund futures slipped 2 ticks implying 39 basis points of policy tightening by the end of the year, keeping the dollar index firm at 101.13.