Asian stock markets plunged as oil prices soared 30 per cent on fears about supplies from the Middle East as the US-Israeli war against Iran continued into a second week with no sign of letting up.

Investors, already spooked by concerns over extended tech valuations and the huge spending on AI, ran for the hills as crude rocketed to its highest level since the Russian invasion of Ukraine in 2022.

Fears grew that the Middle East conflict could last for some time after US President Donald Trump said only the “unconditional surrender” of Iran would end the war.

Both main contracts, which had surged more than a quarter last week, spiked as Iran carried out retaliatory strikes against crude-producing Gulf nations.

West Texas Intermediate, the main US oil benchmark, jumped as much as 30 percent to hit a high of $118.88 per barrel, while Brent spiked 28 percent to as much as $118.73.