This weekend, US President Donald Trump threatened to attack Iran's energy infrastructure if the country does not open the Strait of Hormuz. At the same time, Iran has threatened retaliation and a longer blockade.
The statements have prompted stock analysts, whom Reuters spoke to, to warn of broad declines in global stock markets when trading opens on Monday.
Based on morning trading in Asia, those warnings appear to be materializing. In Seoul, the Kospi had fallen 5.8 percent by lunchtime, and in Tokyo, the Nikkei 225 was down 3.7 percent. The broader Topix was also down 3.5 percent.
The Hong Kong-based Hang Seng was down 3.5 percent, while China's Shenzhen and Shanghai stock exchanges were both down 2.5 percent.
