Asian stocks were set to decline following a significant selloff on Wall Street, as oil prices surged past $100 a barrel for the first time in two months. The escalating Middle East conflict fueled concerns about renewed inflation, contributing to the negative market sentiment.

Investors are closely monitoring the geopolitical developments and their potential impact on global economic stability. The rise in oil prices, a key commodity, often correlates with increased inflationary pressures, which could prompt central banks to consider tighter monetary policies. This, in turn, can dampen investor appetite for riskier assets like equities.

The broader market sentiment has been affected by a combination of factors, including ongoing supply chain disruptions, rising interest rates in major economies, and the heightened geopolitical tensions. The market's reaction to these events will likely shape trading activity in the coming sessions, with a focus on safe-haven assets and defensive sectors.