Stocks slide and oil rises as US and Iran threaten to escalate war

Asian stock markets declined Tuesday as escalating tensions between the United States and Iran raised the prospect of a wider regional conflict. The International Energy Agency's chief warned that an intensification of the war could trigger the world's worst energy crisis in decades, a prospect that spooked investors already nervous about global economic stability. Oil prices and energy stocks are particularly vulnerable to Middle East disruptions, given the region's critical role in global petroleum supplies. The sell-off reflects concerns that military escalation could disrupt shipping lanes, production facilities, and trade routes that are essential to Asian economies heavily dependent on energy imports. Markets typically retreat sharply when geopolitical risks threaten commodity supplies and increase uncertainty about inflation and growth.