Airline stocks experienced declines in Asia on Monday, driven by disruptions in Middle East airspace and airport closures that unsettled travel markets. In contrast, rising oil prices bolstered energy shares in light of the escalating conflict in Iran. Singapore Airlines experienced a decline exceeding 5%, leading the downturn within the sector. Japan’s ANA and JAL experienced declines exceeding 5%, whereas Hong Kong’s Cathay Pacific saw a reduction of 4.2%. Australia’s Qantas and Taiwan’s Eva Air experienced declines exceeding 4% as investors assessed the implications of rising fuel costs and operational disruptions.

Oil futures experienced a significant increase as tensions escalated in the U.S.-Israel conflict with Iran, particularly following the death of Iranian Supreme Leader Ayatollah Ali Khamenei. U.S. President Donald Trump stated on Sunday that military operations in Iran will persist following the deaths of three U.S. service members. Oil futures jumped over 8%. West Texas Intermediate futures last traded at $72.92, while Brent crude was at $79.79 per barrel. Gold futures surged by 2.43% as investors flocked to the global safe haven. Energy stocks in Asia experienced an uptick in response to rising crude prices. Woodside Energy in Australia and Inpex in Japan experienced gains of up to 5%, while China National Offshore Oil Corporation in Hong Kong saw an increase of over 3%. Defense stocks in the region experienced an uptick, albeit to a lesser extent.

Japan’s Mitsubishi Heavy Industries increased by 0.47%, while Kawasaki Heavy Industries and IHI experienced gains exceeding 2%. Singapore’s ST Engineering experienced a 3% increase. Other significant Asian defense stocks were inactive on Monday due to the closure of markets in South Korea for a public holiday. Japan’s Nikkei 225 experienced a decline of 1.35%, settling at 58,057.24, after reducing earlier losses, whereas the Topix decreased by 1.02%, closing at 3,898.42. The Hong Kong Hang Seng index experienced a decline of 2.14%, closing at 26,059.85, thus leading the losses across Asia. In contrast, mainland China’s CSI 300 saw an increase of 0.38%, closing at 4,728.67, defying the broader downtrend.

Australia’s S&P/ASX 200 experienced a slight increase, reaching 9,200.9, as advancements in the oil and gold mining sectors counterbalanced the declines observed elsewhere. In overnight trading, stock futures experienced a significant decline following the strikes in Iran over the weekend. Futures on the Dow Jones Industrial Average experienced a decline exceeding 600 points, translating to a decrease of 1.28%. S&P 500 futures experienced a decline of 1.32%, while Nasdaq 100 futures fell by slightly more than 1.71%.