Asian stock markets began Monday's session on a mixed footing as escalating tensions in the Middle East heightened concerns over energy supplies. South Korea's Kospi fell 1.34%, while Australia's S&P/ASX 200 advanced 0.61%. Japanese markets were shut for a holiday.
US equity futures traded higher after major Wall Street indices finished the previous week with gains. Futures linked to the S&P 500 rose 0.12%, while Nasdaq 100 futures added 0.24%. Dow Jones Industrial Average futures advanced 28 points, or 0.05%.
The Dow and S&P 500 each posted their second weekly gain in three weeks, while the Nasdaq Composite extended its run of weekly advances to four, supported by strength in technology stocks.
Oil Rally
Crude prices rose as the conflict in the Middle East intensified, with attacks involving Yemen's Iran-backed Houthi group and Saudi Arabia raising concerns about further disruptions to regional energy supplies.
Brent crude futures gained 0.73% to $105.48 a barrel, while US West Texas Intermediate advanced 0.64% to $92.44, Reuters reported.
The latest developments followed attacks on oil tankers over the weekend and a deadly strike on Riyadh's international airport. The Houthis claimed responsibility for Saturday's airport attack, which killed 13 people and injured more than 300. Saudi authorities also reported injuries in a subsequent attack on Sunday.
US President Donald Trump said on Saturday that Washington was considering joining Saudi Arabia's military campaign against the Houthis. The confrontation is an extension of the wider conflict involving Iran, which began with US and Israeli strikes in February.
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Rate Risks
The rise in crude prices has renewed concerns that higher energy costs could add to inflationary pressures and complicate the outlook for monetary policy.
The 10-year US Treasury yield has been hovering near 5%, reflecting pressure in the bond market as investors reassess inflation and interest-rate risks. A sustained increase in oil prices could add to these concerns and influence expectations for future Federal Reserve decisions.
Investors will continue to track developments in the Middle East, movements in crude prices and upcoming economic data for signals on the direction of global markets.
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