Asian stocks tanked on Monday as oil surged above $100 a barrel for the first time since 2022 amid escalating political tensions in West Asia.
Tensions in the Gulf escalated following reports of explosions at Al Udeid Air Base, the largest United States military installation in the Middle East.
Bahrain's state oil company has declared force majeure on its shipments after Iranian strikes in the region set the largest oil facility on fire.
Crude prices surged more than 25 percent in early Asian trade, amid fears of supply disruptions, triggering risk-off sentiment across global markets and pushing investors toward the dollar.
The dollar surged while gold trimmed early losses to trade above $5,100 an ounce as investors braced for a prolonged conflict in the Middle East that could send energy costs even higher.
China's Shanghai Composite index dropped 0.67 percent to 4,096.60 after the release of mixed inflation data, with the consumer-price growth accelerating to the quickest in over three years in February while factory deflation moderated again.