Asia-Pacific markets traded broadly lower early Monday, amid concerns over Mideast tensions after Saudi Arabia closed its critical East-West pipeline that bypasses the Strait of Hormuz. Japan's Nikkei 225 fell 0.59% while the Topix inched 0.15% lower. The Kospi dropped 3.45% at open, while the small-cap Kosdaq declined 2.30%. Australia's benchmark S&P/ASX 200 was flat.
Mainland China and Hong Kong shares were lower, tracking broad losses among other Asian markets as worries over Mideast tensions continue to weigh on sentiment. Hong Kong's Hang Seng index was down 0.33%, while mainland China's CSI 300 declined 0.66%. The declines in Hang Seng were led by tech and basic sectors, down 0.82% and 0.80%, respectively.
Oil prices jumped more than 2% on Monday, after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline. Brent crude futures rose $2.90, or 2.77%, to $107.51 per barrel and WTI futures rose $2.27, or 2.27%, to $102.32 per barrel. Prices had initially risen more than 3% at market open.
Saudi Arabian state media on Sunday released video footage of damage to homes and a mosque from what it said was a Houthi attack on the country's southern Jazan province. The Houthis said they had also struck a Saudi military base in a neighbouring province. A vessel in the Strait of Hormuz was struck by a projectile, causing a fire and forcing the crew to be evacuated, the British maritime security agency UKMTO said on Sunday. Iran said one person was killed and four crew wounded aboard an Iranian commercial vessel struck off its coast.
Crude oil prices were expected to rise on Monday amid growing concerns about risks to supply from Saudi Arabia, the world's largest oil exporter, whose East-West oil pipeline was shut on Friday by a drone strike that originated in Iraq.
The loss of the pipeline, which helped Saudi Arabia re-route its exports avoiding the Strait of Hormuz, threatens up to 4% of global oil supply.
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