Oil Prices Surge Amid Gulf Tensions and Market Volatility

Brent crude oil prices rose by 2% on Monday, aligning for a record monthly rise as the global market trembles over escalating Gulf tensions. Investors are worried that the conflict may lead to a surge in inflation and heightened risk of recession across the globe.

Asian markets, heavily reliant on Gulf oil exports, saw shares fall, with Japan's Nikkei index dropping by 2.8%. Conversely, European stocks managed to regain some ground while Wall Street futures showed potential gains, albeit limited. The conflicting developments have investors on edge.

As tension mounts, the closure of the Strait of Hormuz remains critical. Experts warn its prolonged closure could propel oil prices to $150 per barrel, significantly impacting industrial consumption. The Federal Reserve's response to inflation pressures and potential increases in interest rates is closely watched by global investors.

(With inputs from agencies.)