Stock markets slid in Asia on Monday as investors dug in for a protracted Gulf conflict that already has oil prices heading for a record monthly rise, bringing a spike in inflation and the risk of recession to much of the globe.
Pakistan said it was preparing to host "meaningful talks" to end the conflict over Iran in coming days, even though Tehran accused Washington of preparing a land assault as the U.S. military builds up forces in the region.
The Financial Times late on Sunday quoted President Donald Trump saying the U.S. could seize Kharg Island in the Persian Gulf, from where Iran exports much of its oil, but also that a ceasefire could come quickly.
Yemen's Iran-aligned Houthis also launched their first attacks on Israel since the start of the conflict.
"Iran's control of the Strait of Hormuz, capacity to disrupt global energy and food markets, and sustained missile and drone capabilities give it little incentive to concede, pressuring the U.S. to escalate," said Madison Cartwright, senior geo-economics analyst at Commonwealth Bank of Australia.
Source : Reuters