Most Asian stock markets retreated on Monday and currencies edged down against a resilient dollar as the escalating conflict between Israel and Iran weighed on risk sentiment, while investors braced for several central bank meetings this week.

Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

Baker Hughes CEO Lorenzo Simonelli confirms all Middle Eastern projects are operating normally despite escalating tensions between Israel and Iran, while also acknowledging potential impacts on oil supply.

“In response to the evolving geopolitical situation following Israel’s recent attack on Iran and the resulting volatility in the international oil markets, the Prime Minister of Pakistan has constituted a high-level committee to monitor petroleum product pricing and supply dynamics,” read a statement released by the Ministry of Finance on Monday.

Rising Middle East tensions have driven oil prices higher, potentially boosting Texas Pacific Land's future earnings. Read why TPL stock is a hold for now.

Analysts said OPEC might not see any urgency to shift policy, as the surge in prices was driven by a rising risk premium rather than changing market fundamentals.

By Saqib Iqbal Ahmed, Suzanne McGee and Linda Pasquini NEW YORK/GDANSK (Reuters) -Investors were on edge ahead of markets reopening late on Sunday, gripped by anxiety over nationwide protests against President Donald Trump and the escalating threat of a sweeping conflict in the Middle East.