New Delhi, March 3 -- Asian equities tumbled for a second straight session as intensifying conflict in the Middle East rattled investor confidence and reignited fears of an energy-driven inflation surge. With oil climbing and geopolitical tensions spiraling, markets across the region are bracing for heightened volatility.

The MSCI Asia Pacific Index dropped as much as 2%, extending Monday's 1.7% fall following US and Israeli strikes on Iran and Tehran's retaliatory attacks on neighboring countries. South Korea led regional losses as trading resumed after a holiday, with the Kospi plunging up to 4.1%. Japan's Nikkei 225 fell 2.3%, while S&P 500 e-mini futures declined 0.6%, signaling lingering global nervousness.

Wall Street managed to s...