By Shashwat Chauhan

March 2 (Reuters) - An escalating conflict in the Middle East rattled global markets on Monday, as the prospect of a long-drawn fight drove energy prices higher and hammered travel stocks and regional assets.

Israel attacked Lebanon in response to strikes by Hezbollah, while Tehran fired missiles and drones at Israel, Gulf states and a British air base in far-away Cyprus.

U.S. President Donald Trump said the military campaign against Iran could continue for the next four weeks, according to an interview on Sunday with the Daily Mail.

Here are some of the assets that have seen the biggest moves since the conflict started Saturday:

OIL, NATURAL GAS AND ENERGY COMPANIES

Crude prices surged as the conflict shut down oil and gas facilities across the Middle East and disrupted shipping in the crucial Strait of Hormuz, through which about 20% of global oil supply passes.

Shares of U.S. and European energy companies, including Exxon Mobil XOM.N and Shell SHEL.L, were some of the biggest gainers, tracking a more than 8% jump in crude oil LCOc1, CLc1 prices.

"We expect potential duration and physical volume impact of the military escalation will keep upward pressure on both commodity price and energy equities, reducing the risk of 2026 oil price weakness," Piper Sandler analysts said in a note.

Natural gas prices NGc1 also spiked after Qatar halted its production of liquefied natural gas. Qatari LNG accounts for about 20% of global supply.

Shares of natural gas companies like CNX Resources CNX.N, Williams Companies WMB.N rose more than 1% each, while the United States Natural Gas Fund ETF UNG.P added 3.7%.

AIRLINES AND TRAVEL COMPANIES

Ryanair RYA.I, IAG ICAG.L, American Airlines AAL.O and United Airlines UAL.O were among airline stocks that dropped after key Middle Eastern hubs were closed.

Airline stocks often fall when crude prices rise because elevated oil usually means higher jet fuel costs, which is one of airlines' biggest expenses.

The S&P 1500 Passenger Airlines index .SPCOMAIR was down almost 3%.

"Prior conflicts have led to an immediate hit in passenger demand to the impacted region. This tends to be combined with an 'indirect' impact on demand and bookings confidence across broader airline networks," J.P. Morgan analysts said in a note.

Travel companies like Booking Holdings BKNG.O, Expedia Group EXPE.O fell along with hotel chains like Hyatt Hotels H.N and cruise operators including Carnival CCL.N.

Norwegian Cruise Line Holdings NCLH.N warned of uncertainties around its fuel costs this year due to escalating geopolitical tensions.

DEFENSE STOCKS

Shares of major U.S. defense contractors Northrop Grumman NOC.N, General Dynamics GD.N, RTX RTX.N and Lockheed Martin LMT.N were up between 1.1% and 3.7% in early trading.

"The strikes or at least the scope of the strikes reinforce the buildup of U.S. defense spending and key initiatives such as Golden Dome and the restocking and ramping of missiles and defensive interceptors," Jefferies analysts said in a note.

Defense companies in Europe also climbed. UK's BAE Systems BAES.L, Germany's Rheinmetall RHMG.DE and Italy's Leonardo LDOF.M clocked gains.

TANKERS AND FREIGHT COMPANIES

Shares of shipping and tanker companies climbed as the conflict disrupted key Hormuz and Suez routes, tightening capacity and driving expectations of higher freight rates.

European shipping giants Maersk MAERSKb.CO and Hapag-Lloyd HLAG.DE climbed 7.8% and 6.7%, respectively, while shares of U.S. firm Nordic American Tankers NAT.N rose more than 3%.

Oil tanker companies Teekay Tankers TNK.N, International Seaways INSW.N also advanced.

TRADITIONAL SAFE-HAVEN CURRENCIES AND GOLD

Gold XAU= prices climbed as investors fled toward traditional safe-haven assets.

The dollar index =USD, which compares the greenback against a basket of major global peers, climbed 0.6%, with the U.S. currency gaining ground against the Japanese yen JPY=, Swiss franc CHF= and the euro EUR=.

J.P. Morgan analysts said a sustained rise in energy prices should strengthen the dollar while impacting currencies of countries that are heavy importers of the commodity such as those in Central Eastern Europe.

MIDDLE-EAST DOLLAR BONDS AND STOCKS

Long-dated international dollar-denominated bonds from a number of Middle Eastern countries including Qatar, Oman and Saudi Arabia fell sharply amid worries about the conflict spreading.

Equity bourses in Qatar .QSI and Kuwait .BKP also saw steep declines.

The wider risk-off move also hit other emerging-market economies, with dollar bonds in Egypt and Turkey among decliners.

(Reporting by Shashwat Chauhan in Bengaluru; Additional reporting by Vallari Srivastava and Aishwarya Jain; Editing by Sriraj Kalluvila)

((Shashwat.Chauhan@thomsonreuters.com;))