Crude oil prices have surged back above the US$100 per barrel threshold, driven by intensifying military conflict in the Gulf region.
The sharp rise in energy costs has triggered a broad-based risk-off reaction across global financial markets, with investors rapidly repricing the likelihood of persistent supply constraints and higher inflation.
Asian equity markets opened significantly lower on Wednesday, extending the selloff that has gripped global risk assets since the United States launched military strikes against Iran.
The decline was widespread, affecting major indices across the Asia-Pacific region as traders sought to hedge against the escalating geopolitical uncertainty.
The sell-off reflects growing anxiety that the conflict could disrupt key shipping routes and tighten global energy supplies for an extended period.
In fixed-income markets, bond yields rose as investors adjusted their expectations for central bank policy.