South Korea’s benchmark Kospi index was down more than four percent, while Japan’s Nikkei index dropped 2.24%, before both recovered slightly.

The price of the main US benchmark for oil, West Texas Intermediate (WTI), was up 3.30% at US$106.28 a barrel after closing Monday above US$100 for the first time since the war started.

Brent Crude, the international benchmark, climbed 2.23% to US$109.78 early Tuesday.

Trump threatened Monday to destroy Iran’s key oil export hub of Kharg Island along with power and desalination plants unless Tehran quickly accepted a deal, even as he suggested that diplomacy was making headway.

Trump warned that if a deal were not struck – including to reopen the vital Strait of Hormuz shipping lane – US forces would destroy “all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinisation plants!)”.

Destroying civilian infrastructure would be illegal under international humanitarian law and could constitute a war crime, experts say.