Asian Shares Retreat as Oil Surges

Asian shares declined at the start of the week as oil prices climbed amid escalating Middle East tensions. According to AP, investors grew cautious over potential disruptions in the Strait of Hormuz, a key global oil supply route, prompting a regional pullback.

U.S. crude rose to around $72 per barrel, while Brent approached $79, adding inflation concerns and weighing on market sentiment. South Korea led regional losses with a sharp drop after reopening from a holiday, while Japans Nikkei fell over 2% due to its heavy reliance on Middle Eastern energy imports.

Airline stocks were among the hardest hit as higher fuel costs threaten margins. Korean Air, Japan Airlines, and ANA all declined significantly. Energy shares showed mixed performance, with some investors locking in profits despite rising crude prices.

Elsewhere, Hong Kong and mainland China posted modest losses, suggesting caution rather than panic. Analysts note that sustained oil prices above $100 per barrel would likely be needed to trigger a deeper equity downturn.

For now, Asian shares reflect elevated geopolitical risk but remain relatively stable as investors monitor oil markets and regional developments closely.