Oil rises above $115 and Asia stocks slide as Iran war escalates

Global oil prices jumped and stocks fell sharply on Monday morning in Asia as the US-Israel war with Iran escalates.

The price of Brent crude rose by more than 3% to above $115 (£86.77) a barrel, while US-traded oil climbed to $103 after gaining around 3.5%. It puts Brent on track for its biggest monthly gain on record.

Stock markets in Asia opened lower, with Japan's Nikkei 225 down by more than 4.5% and the Kospi in South Korea 3.5% lower.

It comes after Iran-backed Houthi rebels in Yemen joined the conflict by striking Israel over the weekend and Iran threatened to expand retaliatory strikes against universities and the homes of US and Israeli officials

Also over the weekend, Iran's parliament speaker warned that his country's forces were "waiting for American soldiers" as a further 3,500 US troops arrived in the Middle East.

Global energy markets have been hugely volatile after Tehran retaliated to US and Israeli strikes by threatening to attack ships that try to cross the Strait of Hormuz.

Oil and gas shipments through the a crucial waterway for global energy have largely come to a standstill, pushing up prices of oil and gas.

The price of Brent was at around $72 a barrel on 27 February, the day before the US and Israel struck Iran.

On 18 March, the benchmark oil contract hit $119.50, the highest level since June 2022.