Asian shares hit hard, China benchmark down 0.98%

Asian stocks slumped on Wednesday as soaring oil and gas prices due to escalating Middle East conflict spooked markets and fueled demand for safe-haven assets.

After U.S. and Israeli forces attacked Iran, Tehran retaliated by striking U.S. embassies and threatening regional economies.

Shipping through the Strait of Hormuz was halted, quadrupling tanker costs and causing global air transport chaos.

Gold prices were up more than 1 percent in Asian trade, recovering some of the losses in the previous session even as the dollar index extended gains for a third day running amid escalating geopolitical tensions and reduced expectations for interest rate cuts from the Federal Reserve.

Oil prices continued to rise, with Brent crude contract climbing above $83 a barrel on signs the war in Iran is expanding into a broader regional conflict.

With Iran seemingly intent on continuing its strikes against Gulf targets, regional leaders are mulling whether and how to respond.

China's Shanghai Composite index fell 0.98 percent to 4,082.47, with oil and shipping stocks leading losses on Hormuz closure fears.

Hong Kong's Hang Seng index tumbled 2.01 percent to 25,249.48 after the release of mixed Chinese PMI data.

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