Asia-Pacific markets are set for a mixed opening on Monday, following the collapse of U.S.-Iran negotiations, which has heightened concerns over prolonged conflict in the Middle East. The failure of talks has prompted the U.S. to consider a naval blockade of Iranian ports, leading to a significant spike in crude oil prices. West Texas Intermediate surged 8.65% to $105.22 per barrel, while Brent crude rose 8.4% to $103.60.

This escalation in oil prices is likely to exert further pressure on global economies already grappling with inflation and supply chain issues. The uncertainty surrounding U.S. military actions and the potential for extended conflict could dampen investor sentiment, particularly in energy-sensitive sectors. In pre-market trading, U.S. futures indicated a bearish outlook, with the Dow Jones Industrial Average down 517 points.

Market professionals should closely monitor oil price movements and geopolitical developments, as these factors could significantly influence market volatility and sector performance in the coming days.

Source: cnbc.com