The blockade, experts say, is an act of war that requires an open-ended commitment of a significant number of warships. The cut to global supply, if Iranian exports are removed, would be up to 2 million barrels per day.
Soft commodities also rose sharply on heightened concern about disruption to fuel and fertiliser supplies, and bonds were sold on worries about the risks to inflation.
Hungary's forint shot higher after the defeat of Viktor Orban at Sunday's election paved the way for European Union funding to flow to Hungary and perhaps Ukraine.
Other reactions in the Asia session to the breakdown of U.S.-Iran talks, however, were not extreme and sent most asset prices back to where they sat around the middle of last week, before the U.S., Israel and Iran agreed a ceasefire.
That will leave markets trading the headlines while U.S. earnings season begins in earnest with Goldman Sachs reporting before the market opens.
