Oil crash sparks meltdown on virus-hit markets

London: World oil prices crashed on Monday, fuelling a vicious selloff on stock markets -- which were already buckling under intense pressure over the spreading deadly coronavirus.

Stocks tanked as the global oil market nosedived 30 percent at one stage after top exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production.

The dollar slid versus the yen, a haven investment. "The markets have passed from panic mode into pure hysteria," said Ayush Ansal, chief investment officer at trading firm Crimson Black Capital.

"Markets were at breaking point before Saudi Arabia's decision to launch an oil price war, but this latest development has taken them beyond that."

The dizzying oil drop -- the steepest since the 1991 Gulf War -- sent investors fleeing for safety alongside mounting fears over the worsening fatal coronavirus, which has seen Italy lock down a swathe of its north.

"This will be remembered as Black Monday," said analyst Neil Wilson at trading site Markets.com. In late morning deals, London's benchmark FTSE 100 index of top British companies were down 6.3 per cent having tumbled by almost nine per cent early on.

In the eurozone, Frankfurt's DAX 30 slumped 6.8 per cent and the Paris CAC 40 dived 6.9 per cent, compared with the closing levels on Friday.

Italy's stock market took the heaviest battering after a chunk of the county's northern region was sealed off -- including Milan and Venice -- as authorities struggled to contain the spread and impact of coronavirus.