Asia-Pacific markets fell on Monday as investors reacted to escalating tensions after U.S.-Iran talks collapsed and a U.S. naval blockade of Iranian ports was announced.

The breakdown in negotiations raised fears that the conflict could last longer, driving a sharp surge in global oil prices.

West Texas Intermediate rose above $104 a barrel and Brent crude climbed above $102, adding pressure to global inflation concerns.

Major regional indices, including Japan’s Nikkei, South Korea’s Kospi, and India’s Nifty 50, all posted losses, while U.S. futures also dropped sharply, CNBC has reported.

The selloff reflected growing uncertainty over energy supplies and the broader economic impact of the Middle East conflict.