Asian stock markets extended sharp losses after a global sell-off tied to the widening war with Iran, while oil prices climbed further. South Korea's main stock index plunged more than eight percent, triggering a temporary trading halt, as concerns over energy security overshadowed gains linked to artificial intelligence growth.

Japan's benchmark index dropped more than three percent, with investors worried about disruptions to oil and natural gas supplies from the Middle East. Markets in Hong Kong, mainland China, Australia and Taiwan also declined, reflecting broad regional anxiety about rising energy costs and their impact on economic growth.

Oil prices continued to rise, raising fears of higher inflation that could limit the ability of the United States central bank to cut interest rates. On Wall Street, major indexes closed lower after earlier steep declines, as investors weighed the potential economic fallout from sustained increases in energy prices.