Singapore shares plunged on Monday, losing nearly 2%, tracking regional losses as investor sentiment took a major hit following recent developments in the Middle East.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 4,952.66 and 4,996.40 throughout the day. It ended the session at 4,963.67, down 86.29 points or 1.7% compared to Friday's close.

Israel and Iran traded strikes in what was the worst escalations between the two sides since the April ceasefire, threatening to jeopardize ongoing negotiations between Washington and Tehran.

On the corporate front, shares of Asiaphos (SGX:5WV) surged nearly 13% as it signed a non-binding term sheet to acquire a 51% controlling stake in DC Alliance, which owns a Tier III certified data center in Western Australia for AU$7.7 million.

Lum Chang Creations (SGX:LCC) declined nearly 6% as it decided to delay its planned share placement, a prerequisite for the transfer of its shares to the Mainboard of the Singapore Exchange Securities Trading, driven by market volatility.

Meanwhile, MTQ (SGX:M05) was up over 4% at the close as it entered into a conditional sale and purchase agreement to sell its subsidiary, Premier Estate to H3 Engineering Services for SG$12 million.