Oil prices moved higher on Monday while major stock markets across Europe and Asia fell, after fresh warnings from US President Donald Trump heightened concerns over the ongoing conflict with Iran and its effect on global energy supplies.
Brent crude futures for July delivery climbed 1.81 percent to $111.27 per barrel in early trading, while US West Texas Intermediate crude for June rose 2.15 percent to $107.69 a barrel. Investors reacted cautiously after Trump issued a new message to Tehran on his Truth Social platform late Sunday.
“For Iran, the clock is ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!” Trump wrote, adding to fears that tensions in the Middle East could intensify further.
The latest developments come after months of fighting following US and Israeli strikes on Iran earlier this year. Diplomatic efforts to secure a ceasefire have shown little progress, while attacks near critical infrastructure sites in the Gulf have added to uncertainty in global energy markets.
A weekend drone strike near the UAE’s Barakah nuclear power plant deepened investor concerns about the possibility of a wider regional conflict. Although UAE authorities said the plant remained operational and there was no radiation leak, the incident raised alarms over the vulnerability of energy and infrastructure facilities in the Gulf.
Asian stock markets reacted sharply to the growing uncertainty. Japan’s Nikkei 225 index dropped 0.9 percent to 60,843.09, led lower by technology shares after reaching record intraday highs last week. Bond markets in Japan also drew attention as the yield on the 10-year government bond rose to 2.8 percent, its highest level since the late 1990s, reflecting expectations of higher inflation and further interest rate increases by the Bank of Japan.
South Korea’s Kospi index recovered from early losses to gain 0.9 percent at 7,558.50, though investors remained cautious after recent rallies fueled by artificial intelligence-related stocks. Hong Kong’s Hang Seng index fell 1.6 percent, while China’s Shanghai Composite edged 0.1 percent lower after weaker-than-expected retail sales data for April.
Australia’s S&P/ASX 200 declined 1.4 percent, Taiwan’s Taiex lost 1.1 percent and India’s Sensex slipped 0.6 percent.
On Wall Street, US stock futures were largely flat after Friday’s sell-off, which ended a record-setting rally in American equities. Technology companies tied to the artificial intelligence boom led the decline. The S&P 500 fell 1.2 percent from its record high, while the Nasdaq Composite dropped 1.5 percent.
Chipmaker NVIDIA fell 4.4 percent, while Micron Technology dropped 6.6 percent as investors took profits after months of rapid gains in AI-related stocks.
Analysts said rising oil prices, geopolitical uncertainty and concerns about overstretched valuations were weighing on investor sentiment across global markets.
