Asia-Pacific markets were set to open mixed Monday, as investors weigh a U.S. naval blockade on Iran's ports after talks between Washington and Tehran failed to produce an agreement to end the conflict in the Middle East.
The breakdown of negotiations over the weekend in Islamabad reignited worries that the U.S.-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
Crude oil prices surged on Sunday after the talks ended without an agreement and the U.S. moved toward a blockade of Iranian port traffic. The West Texas Intermediate jumped 8.65% at $105.22 per barrel as of 7:45 p.m. ET. Brent crude gained 8.4% at $103.6 per barrel.
U.S. President Donald Trump has reportedly weighed resuming airstrikes on Iran, according to the Wall Street Journal. Trump last week agreed to a two-week ceasefire on Tuesday in exchange for Tehran allowing ships to pass through the strait. He had previously threatened to bomb every bridge and power plant in Iran.
Japan's Nikkei 225 was poised to open lower, with the Chicago futures contract at 56,150, compared with the index's previous close of 56,924.11.
Hong Kong Hang Seng index futures stood at 25,964, compared with the index's last close of 25,893.54.
In Australia, futures last traded at 9,056, higher than the S&P/ASX 200's last close of 8,960.60.
Overnight on Wall Street, Dow Jones Industrial Average futures dropped by 517 points, or 1.1%. S&P 500 futures lost 1.1% and Nasdaq 100 futures shed 1.2%.
â CNBC's Sarah Min and Spencer Kimball contributed to this report.
