Asian Markets Rise Amid Escalating Oil Prices and Middle East Tensions

Asian stock markets experienced gains on Monday, with Japan's Nikkei 225 increasing by nearly 1.1% to 53,692.42 and South Korea's Kospi rising 1.5% to 5,460.24. Markets in Australia, Hong Kong, and Shanghai were closed due to holidays.

Investors are closely monitoring the escalating conflict in Iran and its impact on global oil prices. President Donald Trump has set a Tuesday deadline for Iran to reopen the Strait of Hormuz, a critical passage for global oil shipments. Over the weekend, the U.S. rescued two aviators after their fighter jet was shot down by Iran.

Oil prices continued to climb, with U.S. crude reaching $111.92 per barrel and Brent crude at $110.74 per barrel. The ongoing conflict has raised concerns about prolonged disruptions in oil supply, particularly affecting nations like Japan that heavily rely on energy imports through the Strait of Hormuz.

In currency markets, the U.S. dollar edged up to 159.65 Japanese yen from 159.63, while the euro declined to $1.1509 from $1.1517.

Analysts note that uncertainty surrounding the Iranian conflict is a significant factor influencing current market behavior. Jay Woods, an analyst at Freedom Capital Markets in New York, commented, "As we kick off the first full trading week of April, the word uncertainty is paramount. Last year it was centered on the impact of 'Liberation Day' tariffs, this year it's uncertainty surrounding the ongoing Iranian War."