Asian Stocks Set to Surge as Iran Crisis Drives Oil Prices Up

Asian markets are expected to open higher on Monday, with investors betting that a rise in oil prices will boost energy shares. The gains come as fresh tensions involving Iran push crude costs upward, creating a tailwind for regional exporters and commodity producers. Oil prices climbed after reports indicated heightened military activity near key shipping routes in the Strait of Hormuz. Analysts say the risk of supply disruption has increased, though no major outages have been reported so far. The strait handles about one-fifth of global oil consumption, making any threat there a trigger for price spikes. In response, energy-heavy indexes in Japan, South Korea, and Australia are projected to advance. Shares of refining and exploration firms are likely to lead the rally. Meanwhile, airline and transport stocks may face pressure due to higher fuel costs, tempering broader index gains. Investors are also watching the U.S. dollar and Treasury yields, which moved slightly after the oil news. Central bank policy remains in focus, but traders are now prioritizing geopolitical risk over interest-rate expectations. The overall mood is cautious optimism, with most regional bourses set to open in positive territory. The key question is whether oil prices can hold their gains. If tensions ease, markets could quickly reverse. For now, the oil spike is giving Asian stocks a clear, if fragile, boost.