Why did oil prices surge on Monday, and what specific Middle East developments triggered the rally?

Oil prices surged on Monday because of a flare-up in Middle East tensions, specifically Iran's missile barrages toward northern Israel on 7 June following Israeli airstrikes in Beirut that killed two people and wounded dozens; additionally, US Central Command confirmed it downed two Iranian attack drones targeting international shipping in the Strait of Hormuz, and six ballistic missiles fired at Bahrain and Kuwait were intercepted on 5 June—prompting US retaliatory air strikes against Iranian radar sites. The 100-day conflict has already severely restricted crude, refined fuels, and natural gas flows through the near-closed Strait of Hormuz, directly tightening global supply.

What immediate financial market impacts were observed across Asia and the US following the Middle East escalation and US jobs data?

Asian equity markets slumped sharply: Japan’s Nikkei 225 fell 3.83% to 64,040.40; Hong Kong’s Hang Seng dropped 0.64% to 24,801.10; and South Korea’s KOSPI tumbled 4.02% to 7,832.788—after an earlier plunge exceeding 8% triggered a circuit breaker. Meanwhile, robust US May jobs data fueled fears of aggressive Fed rate hikes, sending the S&P 500 down 2.6% (its worst session since October) and the Nasdaq Composite plunging 4.2%—its largest one-day point drop on record—driving a sharp rotation out of AI stocks.