SYDNEY, March 30 - Stock futures plunged across Asia Monday as investors brace for a prolonged Gulf conflict. Oil prices surged, with Brent crude climbing 2.4% to $115.33 a barrel, marking a 59% monthly increase.
Iran’s control of the Strait of Hormuz and its missile capabilities are fueling concerns about long-term energy disruptions. The situation threatens global inflation, recession risks, and supply chains for fuels, fertilizers, and consumer goods.
Japan’s Nikkei futures dropped sharply, while S&P 500 and Nasdaq futures fell 0.6% and 0.7% respectively. U.S. crude rose 3.0% to $102.52, showing a 53% monthly climb.
JPMorgan warned that extended closure of the Strait could push oil prices toward $150/barrel. Meanwhile, the Federal Reserve's monetary outlook has shifted, with markets now expecting rate hikes instead of cuts.
U.S. retail sales and payrolls data are expected to shape investor sentiment this week, with March jobs growth seen rising to 55,000.
In Europe, inflation is projected to rise to 2.7% in March, while sovereign bonds face pressure from rising borrowing costs and defense spending demands.
The U.S. dollar strengthened against the yen and euro, reflecting increased demand for safe-haven assets during global uncertainty.
Gold prices remained flat at $4,487 an ounce, offering limited refuge amid escalating geopolitical risk.