Oil prices rose sharply on Monday while most Asian stock markets declined after renewed military action between the United States and Iran reignited concerns over energy supplies and global economic stability.

Brent crude, the international oil benchmark, climbed 3.9 percent to $78.96 a barrel, while U.S. West Texas Intermediate gained 4 percent to $74.26 a barrel. The increase reversed recent declines that had followed an interim agreement between Washington and Tehran, which had eased tensions and allowed shipping to resume through the Strait of Hormuz.

Market sentiment shifted after the United States launched several rounds of airstrikes against targets in Iran early Monday. The operation followed an Iranian attack on a container ship in the Strait of Hormuz over the weekend that left the vessel on fire and one crew member missing. Iran responded with strikes targeting multiple countries across the Middle East, raising fears of wider regional instability.

The renewed conflict also affected financial markets. U.S. stock futures moved lower, with contracts linked to the S&P 500 falling 0.4 percent, the Dow Jones Industrial Average slipping 0.3 percent and the Nasdaq Composite declining 1 percent.

Across Asia, Japan’s Nikkei 225 dropped 1.1 percent, while South Korea’s Kospi index tumbled 5.6 percent. Technology shares led the losses in Seoul, with memory chip manufacturer SK Hynix falling 10.6 percent after its shares had surged following a successful U.S. listing on Friday. Rival Samsung Electronics also declined 6.7 percent.

Elsewhere, Hong Kong’s Hang Seng Index edged up 0.1 percent, providing one of the few gains in the region, while China’s Shanghai Composite Index fell 1.2 percent. Australia’s S&P/ASX 200 slipped 0.3 percent.

Despite Monday’s sell-off, Wall Street ended last week on a positive note as investors continued buying shares linked to artificial intelligence. The S&P 500 rose 0.4 percent on Friday, the Dow gained 0.3 percent and the Nasdaq added 0.3 percent, supported by strong performances from major technology companies.

Nvidia remained a major driver of market gains, rising 4 percent on Friday as enthusiasm for AI-related investments continued. SK Hynix also attracted investor attention after raising about $26.5 billion through the sale of American depositary shares. Its stock in Seoul has increased more than 600 percent over the past year amid booming demand for memory chips used in AI applications.

Investors are now turning their attention to the upcoming corporate earnings season, with several of the largest U.S. banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Wells Fargo, scheduled to report results this week.

Analysts said the latest escalation in the Middle East has added fresh uncertainty to the economic outlook. Rising oil prices could keep inflation elevated, increasing pressure on central banks such as the U.S. Federal Reserve to maintain higher interest rates. While tighter monetary policy can help contain inflation, it may also slow economic growth and weigh on financial markets in the months ahead.

Turkey has emerged as the most affordable holiday destination among seven of Europe’s most popular tourist countries, while Portugal offers the best value for hotels and restaurants, according to a Euronews Business analysis of Eurostat price data.

The comparison examined national average prices across Turkey, Portugal, Spain, Greece, Croatia, Italy and France, covering a wide range of consumer goods and services. Although prices in major tourist resorts can vary from national averages, the data provides a broad picture of what travellers can expect when planning summer holidays.

Using Eurostat’s Household Final Consumption Expenditure price index, which measures the average cost of more than 2,000 goods and services, Turkey ranked as the least expensive destination overall. A basket of goods and services costing €100 across the European Union would cost about €59.60 in Turkey, making it roughly 40% cheaper than the EU average.

France was the most expensive country in the survey, with average prices slightly above the EU benchmark at €100.30. Italy followed at €97.10, while Spain, Greece, Portugal and Croatia all recorded lower overall price levels than the European average.

Accommodation and dining costs showed even greater differences. Portugal offered the lowest prices for hotels and restaurants, with a price index of 73.6, meaning visitors could expect to pay more than 26% less than the EU average for meals and lodging. Turkey ranked second in this category with a score of 78.3, while Spain and Greece also remained below the European average.

France proved to be the most expensive destination for accommodation and restaurant services, followed by Italy.

Food prices varied less dramatically across the countries. France again recorded the highest average grocery costs, with food prices almost 8% above the EU average. Turkey remained the least expensive for food shopping, while Spain was the only other country where food prices were below the European benchmark.

One category where Turkey stood out for a different reason was alcohol. Despite being the cheapest destination overall, alcoholic beverages were by far the most expensive among the countries surveyed. Alcohol prices were more than double the EU average, largely reflecting the country’s high taxes on alcoholic drinks.

Italy offered the lowest alcohol prices, while Spain also remained below the European average. Greece and Croatia recorded relatively high prices for alcoholic beverages.

Turkey also had the lowest tobacco prices by a considerable margin and ranked as the cheapest destination for public transport. France was the only country where public transport costs exceeded the EU average.

Seafood prices were comparatively stable across all seven destinations, with only modest differences between countries.

The analysis noted that the figures reflect national averages rather than prices in individual holiday resorts. It also does not account for differences in income levels, meaning affordability may vary depending on where travellers are visiting from.

The European Union has moved a step closer to introducing the digital euro after the European Parliament approved its negotiating position, clearing the way for final discussions with member states on the proposed digital currency.

The vote in Strasbourg marks the beginning of the last phase of negotiations between the European Parliament and EU governments. Lawmakers and national representatives are expected to focus on several complex issues, including how banks and payment providers will be compensated for offering digital euro services and how transaction fees will be distributed across the payment system.

The digital euro is planned as an electronic version of central bank money issued and guaranteed by the European Central Bank (ECB). Officials have repeatedly stressed that the new currency is intended to complement physical cash rather than replace it, while also working alongside existing banking and payment services.

Under the proposal, consumers would be able to store digital euros in a dedicated electronic wallet. A maximum holding limit will be introduced, although the exact amount has not yet been decided.

The system is expected to support both online and offline payments, allowing transactions even when internet access is unavailable. Privacy has also been presented as a key feature of the project. According to the proposal, the ECB will operate the underlying infrastructure but will not be able to directly identify users through their payment data.

Commercial banks and payment service providers will be responsible for offering digital euro accounts and related services to individuals and businesses, creating a partnership between the central bank and the private financial sector.

According to sources familiar with the negotiations, the most challenging issue remains the compensation model. Negotiators must determine which financial institutions will receive payments for providing digital euro services, how much compensation they should receive and how those payments will be financed.

Another important topic is the distribution of transaction fees throughout the payment chain. Current proposals suggest merchants would pay lower fees than those typically charged for traditional card payments, a move that supporters believe could reduce business costs and encourage wider adoption of digital payments.

The negotiations are expected to intensify during the autumn as lawmakers seek to resolve outstanding disagreements before presenting the final legislation.

If agreement is reached, EU institutions aim to grant final approval before the end of the year. The European Central Bank is expected to begin a pilot programme in 2027 to test the system before a wider public rollout.

Current plans envisage the digital euro becoming available for everyday retail payments in 2029. European officials view the initiative as an important step toward strengthening the region’s payment infrastructure, improving financial resilience and providing consumers with a secure public digital payment option in an increasingly cashless economy.