Hong Kong stocks plummeted as tensions in the Middle East surged, driving oil prices to recent highs. The escalation led to increased strikes on Iran and deployments of US military forces in the region.

Hong Kong stocks dropped on Monday as escalating tensions in the Middle East sent oil prices to recent highs. Over the weekend, Yemen’s Iran-backed Houthi rebels launched attacks directly on Israel, which intensified strikes on Tehran. The US has also deployed additional military forces to the Middle East. The escalation pushed up oil prices, with Brent crude jumping as much as 3.7 per cent to US$116.80 a barrel, its highest in more than a week, while West Texas Intermediate rose to US$101 a...