Adding to the tension, U.S. President Donald Trump intensified his rhetoric on Monday. He threatened substantial military action against Iran, specifically targeting its electricity infrastructure, oil fields, and Kharg Island, should the Strait of Hormuz remain closed and no peace agreement be reached to conclude the ongoing war.

President Trump’s comments came as the conflict with Iran dragged into its fifth week. The U.S. administration is contemplating deploying ground forces to capture Kharg Island, a pivotal oil hub responsible for 90% of Iran’s crude exports.

Since the onset of hostilities, including strikes launched by U.S. and Israeli forces against Iran on February 28, shipping activity through the once-bustling Strait of Hormuz has nearly ceased. Previously, this vital waterway facilitated the transit of one-fifth of the world’s seaborne oil.

Shipping traffic through the Hormuz waterway, through which a fifth of the global seaborne oil used to transit before the conflict, has virtually ground to a halt since U.S. and Israel launched strikes on Iran on Feb. 28.

The West Texas Intermediate rose 2.8% to $105.8 per barrel. May futures for the International benchmark Brent crude surged 2% to $115.17 per barrel.

South Korea’s blue-chip Kospi led the losses in Asia, dropping over 4% while the small-cap Kosdaq lost more than 3%. The Korean won depreciated 0.63% to 1,526.9 against the U.S. dollar, hitting its weakest level since 2009.

Japan’s Nikkei 225 dropped 2.2% while the broad-based Topix slid 1.4%.

Australia’s S&P/ASX 200 tumbled 0.56%.

Hong Kong Hang Seng index futures were at 24,683, compared with the index’s last close of 24,750.8.