A key concern for markets would center around the potential impact of the developments in the Middle East on oil prices and thus on inflation.

Global oil markets jolted sharply upward on Monday after the United States bombed three of Iran’s key nuclear facilities over the weekend, raising fears that Tehran will retaliate by targeting critical Gulf oil infrastructure or disrupting shipping through the Strait of Hormuz, the Financial Times reported.

Oil prices surged and Asian markets traded lower on Monday on concerns of disruption to energy markets after US air strikes on Iran's nuclear facilities. "An oil price shock would create a real negative impact on most Asian economies" as many are big net energy importers,