Asian markets tumbled Monday as U.S.-Israeli strikes on Iran sent shockwaves through global trading floors. Hong Kong's Hang Seng led declines, dropping 2.4%, while Japan's Nikkei 225 fell 1.6% as investors fled to safety amid escalating Middle East tensions.

Oil prices surged following the weekend attacks that killed Iranian leaders including Supreme Leader Ayatollah Khamenei. The conflict triggered a broad selloff across regional indices, with China's Shanghai Composite down 0.6% and Australia's ASX 200 losing 0.5%. Singapore's index shed 1.8% as markets braced for potential supply disruptions.

Technology stocks amplified the losses, with software shares extending February's declines on AI competition fears. Investors also grappled with sticky inflation concerns after strong U.S. economic data. The Reserve Bank of Australia's potential rate hikes added pressure, while Bank of Japan rate hike expectations faded. Markets now await China's upcoming political meetings that could signal fresh stimulus measures.