Asian stock markets plunged on Monday as escalating tensions in Iran and a sharp surge in oil prices triggered widespread selling. Benchmark indexes fell steeply across the region, with South Korea dropping 8 percent, Japan about 7 percent, Taiwan roughly 5 percent and Hong Kong more than 3 percent. Stock futures in the United States also pointed to significant losses.

Investors are grappling with a spike in oil prices after West Texas Intermediate crude rose above 110 dollars per barrel, its highest level in more than three and a half years. The surge followed reports linked to disruptions in the Strait of Hormuz, a vital route for oil shipments, raising concerns for energy dependent economies such as Japan, South Korea and Taiwan.

Technology and semiconductor stocks, which had rallied strongly this year on optimism around artificial intelligence, were among the hardest hit. Major chipmakers and suppliers in Japan, South Korea and Taiwan posted sharp declines. The market turmoil now tests investor confidence in the technology sector, particularly if prolonged energy disruptions threaten chip production across the region.