GLOBAL STOCKS CRASH AS OIL NEARS $120 AMID MIDDLE EAST CONFLICT

Emirates 24/7 — Global stock indices and U.S. equity futures plummeted on Monday as oil prices surged toward $120 per barrel, driven by the escalating conflict in the Middle East. The sharp rise in energy costs has cast a long shadow over global economies, particularly those heavily reliant on crude oil and gas imports.

In the United States, futures for the S&P 500, Nasdaq, and Dow Jones Industrial Average all retreated by more than 1.5%. The contagion spread rapidly across Asian markets, where Japan’s Nikkei 225 dived 5.2% to close at 52,728.72 points—its lowest level since early February. South Korea’s KOSPI plunged 6%, while Taiwan’s benchmark slumped 4.4%.

EUROPEAN MARKETS RETREAT European equities hit a two-month low as the prospect of "sticky" inflation intensified. The pan-European STOXX 600 index fell 2.34% to 585.08 points, marking its third consecutive day of losses. France’s CAC 40 and the UK’s FTSE 100 saw declines of 2.7% and 1.9%, respectively.

Banking and technology sectors led the downward trend in Europe, falling over 3%. Airline stocks, including Lufthansa and Air France-KLM, dropped between 3.9% and 5.2% due to rising fuel costs. Conversely, defense firm Leonardo and energy stocks saw marginal gains as investors pivoted toward security and resource hedges.

JAPANESE SEMICONDUCTORS CRASH The sell-off was most pronounced in Tokyo’s tech sector, where semiconductor giants Advantest and Tokyo Electron lost 11.03% and 6.87%, respectively. Analysts noted that the market is now fully pricing in the risks of a prolonged Middle East conflict.

"The market is starting to take the Middle East conflict seriously," said Hitoshi Asaoka, senior strategist at Asset Management One. "The Nikkei's decline at this pace is justified if the conflict is prolonged."

All 33 sub-indices on the Tokyo Stock Exchange ended in negative territory, with non-ferrous metals emerging as the worst-performing sector, down 8.38%.