HONG KONG, March 4 — Seoul shares collapsed more than 12 per cent as Asian equity markets were hit by panic selling today, while oil rose amid fears the US-Israel war on Iran will fan inflation and hammer the global economy.

As the joint strikes on the Islamic republic moved into a fifth day, observers warned that the continued choking of crude supplies from the Middle East would continue to push prices higher and deal a blow to hopes for any more monetary easing.