Stock markets fell on Monday as fresh U.S. attacks on the Islamic Republic boosted oil prices, strengthening speculation about an increase in the Federal Reserve’s interest rate to curb inflationary pressure.

The MSCI Asia-Pacific index fell by 1.6%, and South Korea’s Kospi index dropped 7%. SK Hynix shares also fell 12% in Seoul after its depository receipts surged 13% in U.S. trading on Friday.

The Nasdaq 100 index futures also fell by more than 1%, and European markets are expected to open down by about 1%.

A stronger dollar reduced the appeal of non-yielding precious metals; gold fell 1.5% to around $4,060 per ounce, and silver dropped nearly 3% to trade at about $58.