Asia-Pacific markets were set to open higher Monday, as investors continue to keep a cautious eye on developments in the Middle East amid renewed tensions between Iran and the U.S.
President Donald Trump said Sunday that a U.S Navy guided missile destroyer had fired on and disabled an Iranian-flagged cargo ship in the Gulf of Oman before Marines boarded and seized the vessel.
The seizure is an escalation of the blockade and comes after Iran fired upon commercial vessels attempting to transit the Strait of Hormuz earlier Sunday. The strait is between the Persian Gulf and the Gulf of Oman.
Since last week, the U.S. has been operating a naval blockade of ships entering and exiting Iranian ports. Iran views the ongoing blockade as a breach of the ceasefire reached by the U.S. and Iran, and cites this as one of its reasons for calling off the expected negotiations on Monday in Islamabad.
Trump warned on Sunday he would “knock out every single Power Plant, and every single Bridge, in Iran” if Tehran did not agree to Washington’s terms to end the conflict.
