Oil futures jumped past $110 a barrel Monday as escalating Middle East tensions rattled global markets. Asian stocks plunged, with Japan's Nikkei 225 falling over 6% and South Korea's Kospi down about 8%.
The surge is driven by fears that conflict could disrupt oil flows through the Strait of Hormuz, a critical chokepoint for global crude supply. Prediction markets indicate a strong likelihood of crude reaching $120 by the end of March.
Bitcoin traded near $67,000, showing little sign of panic selling. Other cryptocurrencies also held steady, suggesting the market views the oil spike as an energy-specific event rather than a broader risk-off scenario. The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, but sustained high oil prices could pressure inflation and complicate future rate decisions.