US Dow futures dropped 400-570 points overnight, S&P 500 futures were down 1 per cent, while Nasdaq futures were down more than 1 per cent as the United States and Israel’s military campaign against Iran continued on Monday.

Asian markets also opened lower amid fears of a broader Middle East escalation disrupting global supply chains and energy.

China’s stock market

Mainland China stocks opened lower but showed resilience with muted declines overall. The Shanghai Composite Index opened down 0.27 per cent at around 4,151 points and traded around 4,153-4,157 points mid-session. The CSI 300 fell 0.6 per cent in early trading.

Gains in defence, energy and related sectors offset losses in airlines, tourism, and consumer cyclicals sensitive to oil spikes and travel disruptions. Hong Kong’s Hang Seng Index, which is more susceptible to global market volatility, dropped over 2 per cent as of midday.

Oil and gold

Oil prices surged dramatically due to Iran risks, which is Opec’s fourth-largest producer. Brent crude jumped 7-13 per cent to around US$78-82 per cent barrel in early trading of Monday. Some analysts warn of further hikes if conflict worsens.