Iran's new Supreme Leader Mojtaba Khamenei said in a late Thursday speech that the Strait of Hormuz, a vital artery for global oil trade, should remain shut.

The oil price reached nearly $120 a barrel on Monday over fears of lengthy disruption to supplies.

Asia-Pacific markets looked set to fall Thursday as investors grappled with volatile oil prices and escalating tensions in the Middle East.

Iran's new Supreme Leader Mojtaba Khamenei said in a late Thursday speech that the Strait of Hormuz, a vital artery for global oil trade, should remain shut.

Energy markets remain on tenterhooks as the prospect of prolonged war in the Middle East grows.