Danni Hewson, head of financial analysis at AJ Bell, said: “Market nervousness around the situation in the Middle East continues to ratchet up as the Iran conflict enters a fifth week.
“Comments from President Trump about seizing Iranian oil and the country’s Kharg Island export hub, a build-up of US troops and the involvement of Tehran-backed Houthis in the war all create the impression of a conflict that is escalating rather than drawing to a close.
“With shipping routes beyond the Strait of Hormuz now seen at some risk of disruption too, Brent crude oil prices remain firmly in alarm bell territory at more than $115 per barrel and are on course for a record monthly gain.
“Other commodities including fertilisers and aluminium are also being caught up in the turmoil.
“In this context it was no surprise to see Asian markets under pressure on Monday, with many countries in the region particularly exposed to the current crisis given they source much of their energy from the Middle East.”
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