Oil prices surged as the collapse of U.S.-Iran peace talks over the weekend reignited fears of supply disruptions in the Middle East. President Trump and his advisers are considering resuming limited military strikes in Iran, while U.S. Central Command announced plans to blockade all maritime traffic entering and exiting Iranian ports starting Monday.

The Strait of Hormuz, through which one-fifth of the world's oil typically flows, has become the focal point of escalating tensions. Market participants had hoped for a diplomatic solution to the conflict, but the failed talks and threatened blockade have shattered those expectations. Commerzbank Research analysts warned that enforcing the blockade would disrupt shipping activity through this critical waterway.

Front-month West Texas Intermediate crude oil futures climbed 8.3% to $104.56 a barrel, while Brent crude rose 7.9% to $102.74 a barrel. The market turmoil extended to Asian equities, with Japan's Nikkei Stock Average losing 0.8%, South Korea's Kospi dropping 0.9%, and Australia's S&P/ASX 200 benchmark index shedding 0.6%. U.S. stock-market futures also declined, reflecting growing investor anxiety over the potential economic fallout from the escalating Middle East conflict.