Oil prices surged, while U.S. stock futures and Asian equities fell, after U.S. President Donald Trump ordered a blockade of the Strait of Hormuz over the weekend, following the collapse of peace talks between the United States and Iran, escalating tensions.

The global benchmark Brent crude rose 8.6% to $103.16 per barrel; European natural gas futures surged by as much as 17% in early trading. S&P 500 index futures dropped 1.1%, and South Korea's KOSPI index led declines in Asian stock indices with a fall of over 2%, as markets worried that high oil prices would hinder economic growth.

The U.S. dollar advanced against all G-10 currencies, while Asian currencies weakened, with the South Korean won falling by as much as 1%. U.S. Treasury bonds declined; the yield on Japan’s 10-year government bond rose to 2.49%, its highest level since 1997. Spot gold fell 1.7% to around $4,650 per ounce, as rising oil prices fueled speculation that interest rates would remain elevated in the future.

The U.S. Central Command stated that starting at 10 a.m. New York time on Monday, U.S. forces would begin enforcing a blockade on all vessels entering or leaving Iranian ports. U.S. military operations would not impede the freedom of navigation for ships traveling through the Strait of Hormuz to and from non-Iranian ports. Iran stated it would not allow the blockade to proceed. Specifically, the MSCI Asia Pacific Index fell 0.5% to 247.24 points.

The Nikkei 225 index declined 0.4% to 56,723.27 points.

E-mini S&P 500 futures dropped 1.1% to 6,781.5 points.

The yield on the 10-year U.S. Treasury note rose 4.2 basis points to 4.3587%.