Asian stocks drifted lower on Monday as investors closely monitored escalating West Asian tensions.
The conflict in the region escalated further today after Israel launched airstrikes on Hezbollah targets in Beirut and other parts of Lebanon following projectile fire from Lebanese territory into northern Israel.
U.S. President Donald Trump suggested the conflict with Iran could go on for the next four weeks, raising concerns about a significant widening of hostilities in the region that could severely disrupt the global supply of crude oil and send prices soaring to levels not seen in years.
Barclays has warned that Brent crude prices could reach $100 a barrel in the event of a material supply disruption.
The dollar strengthened in Asian trade while gold jumped more than 2 percent to trade above $5,400 an ounce as the Middle East conflict triggered a broad retreat from risk assets.
Oil prices soared almost 9 percent after at least three ships were attacked near the Strait of Hormuz, which is crucial for the flow of oil to the rest of the world.
Chinese stocks bucked the weak regional trend, with the benchmark Shanghai Composite index rising 0.47 percent to 4,182.59 as national lawmakers and political advisors gather for a key strategic session.