Investors in Asia struck a cautious tone at the start of trading on Monday, as an escalating conflict between Israel and Iran pushed oil prices higher and raised wider questions about a long-run fallout.

Amid escalating tensions following Israel's military strikes on Iran, analysts warn that China may retaliate against the U.S. through Iranian proxies, affecting Middle Eastern dynamics and international relations.

National security experts warn that Israel's attack on Iran shows why Chinese land and asset purchases in the U.S. pose a significant threat to American security.

Futures on Wall Street are currently in cautious mode as they await further details on the ongoing hostilities between Israel and Iran, which have now entered the fourth day. Futures of all three indices are currently trading at the flat line,

Israel and Iran have opened a new chapter in their long history of conflict. Israel launched a major attack with strikes early Friday that set off explosions in the Iranian capital of Tehran.

Asia-Pacific markets rose Monday, as investors assessed escalating Israel-Iran tensions, while awaiting a slew of data from China. Oil prices jumped as Israel and Iran exchanged strikes, while gold prices rallied, as investors sought refuge in the safe haven metal with equity markets sliding globally. The attacks continued over the weekend.

China was deeply concerned about the Israeli attacks on Iran and urged de-escalation for regional peace and stability, a Chinese foreign ministry spokesperson said on Friday. "China opposes any infringement upon Iran's sovereignty,

U.S. oil prices already jumped last week, which could cause prices at the pump to rise about 20 cents a gallon in the coming weeks, according to one estimate.