Asian share markets declined on Monday after intensified fighting in the Gulf region. Iran stated it had closed the Strait of Hormuz, pushing oil prices sharply higher and reviving global inflation concerns. The dollar strengthened alongside bond yields as traders raised expectations for a Federal Reserve interest rate increase. Brent crude rose 3.3 percent to 78.50 dollars per barrel, while U.S. crude gained 3.4 percent to 73.83 dollars. U.S. officials reported escorting about 20 vessels through the strait in the prior day. Equity investors await the earnings season, which begins with major banks on Tuesday. S&P 500 futures eased 0.3 percent and Nasdaq futures dropped 0.5 percent. Japan’s Nikkei index fell 1.0 percent. South Korea’s market eased 0.4 percent after recent sharp losses. Ten-year Treasury yields increased two basis points to 4.59 percent. The dollar index held steady near 101.12. Gold declined 1.1 percent to 4,076 dollars an ounce.
