Oil prices rocketed past $100 a barrel, while Japan's Nikkei Stock Average tumbled 6.7% as escalating Middle East tensions stoked fears of petroleum supply disruptions and accelerating inflation. Front-month West Texas Intermediate crude futures surged 20.1% to $109.20, and Brent crude rose 17.7% to $109.13. This sharp spike amplifies concerns that central banks across Asia may need to quicken interest rate hikes to combat rising costs, potentially dampening economic growth.

The conflict's impact is immediate, driving up energy costs globally and pressuring equity markets already wary of geopolitical risks.