Strait of Hormuz crisis roils Asian markets

Escalating tensions over the Strait of Hormuz have driven crude oil prices sharply higher and triggered broad selloffs in Asian stock markets. Iran has warned it will not reopen the strait unless the U.S. meets preconditions including compensation, lifting sanctions, and ending military threats. Iran also ruled out talks to extend a 60-day ceasefire that expired Monday. U.S. President Donald Trump said there are no U.S.-Iran peace talks scheduled and reportedly threatened to bomb Oman if it interferes, as Iran and Oman move closer to an understanding over strait management. With both the U.S. and Iran asserting control, shipping traffic has fallen drastically, rekindling supply concerns. West Texas Intermediate crude surged over 5% to $82.25 per barrel on Monday, then edged higher to $84.89. Asian markets traded mostly lower, with Japan's Nikkei 225 falling over 2.5% and South Korea tumbling 5.4% amid a semiconductor selloff. Australian shares declined, though energy stocks gained. Bond yields spiked to near two-decade highs on inflation worries. The Australia — Reserve Bank of Australia kept its benchmark rate unchanged at 4.35%.