Emerging-market stocks fell for a third straight session as rising Middle East tensions and uncertainty over the global rate outlook pressured investors. The MSCI gauge of developing-nation equities dropped, poised for its longest decline run in almost two months. South Korea's Kospi slid more than 3% after major AI firms called for a slowdown in the technology's development, raising concerns about a key driver of this year's rally. An index of emerging-market currencies was little changed after two sessions of losses. The Thai baht and Philippine peso led declines in emerging Asia as higher oil prices weighed on energy-importing economies. The South Korean won and Taiwanese dollar also fell.

Brent crude rose 2.9% to $107.65 a barrel after Saudi Arabia closed its East-West pipeline, a key alternative to the Strait of Hormuz for oil exports, following multiple attacks. A planned meeting for Monday between Iran and several Gulf nations on creating a temporary shipping lane through the strait has been postponed, according to Oman's foreign minister.

Traders are awaiting a string of central-bank decisions this week, starting with the Federal Reserve on Wednesday, followed by the Bank of England and Bank of Japan, for clues on the path for global interest rates as policymakers grapple with renewed inflation risks from higher oil prices.