Stock markets in East Asia fell sharply on Monday as the latest escalation in the Middle East rattled investors.
South Korea’s benchmark KOSPI index opened the trading week down more than 8%, prompting the Seoul stock exchange to impose a 20-minute trading halt.
By midday, the KOSPI had recovered some ground but was still down around 4%. Japan’s benchmark Nikkei 225 index was down 3.8%.
Iran fired missiles at Israel on Sunday evening for the first time in two months, prompting Israel to attack Iran early on Monday.
The Iranian strikes came in response to Israeli attacks on the Hezbollah militia in Beirut. The latest escalation has raised fears of renewed open conflict between Israel and Iran.
It also threatens to derail a possible agreement between Iran and the United States.
Oil prices also rose sharply. A barrel (159 litres) of Brent crude for delivery in August traded at $96.27 early on Monday, up almost 3.2% from the previous day.
South Korea and Japan are both heavily dependent on oil supplies from the Middle East.
