Asian markets tumbled Monday as the Middle East conflict intensified, pushing Brent crude above $116 a barrel. Japan's Topix index plunged 4.7% and South Korea's Kospi dropped 4.3%, while S&P 500 futures fell 0.8%. The oil price surge of more than 3% reflects growing concerns about supply disruptions in the region.

Investors rushed to safe havens as geopolitical tensions mounted. The dollar strengthened 0.2% against major currencies, while gold prices fell 1.4% to $4,428 per troy ounce. US Treasury yields held steady at 4.42% for 10-year bonds, indicating market uncertainty about the conflict's economic impact.

The market reaction underscores how quickly Middle East tensions can rattle global financial systems. Energy markets are particularly sensitive to regional instability, with even small supply disruptions capable of triggering significant price swings. The current spike adds to inflationary pressures already challenging central banks worldwide.