Arabic version: تراجع الأسواق الآسيوية مع تصاعد التوترات بين الولايات المتحدة وإيران

Major stock markets in Asia slumped on Monday after Washington and Tehran threatened to escalate hostilities, as the Iran war enters its fourth week. According to BBC News, Japan’s benchmark Nikkei 225 index was almost 3.6% lower, while South Korea’s Kospi fell by almost 6%. The ongoing conflict has heavily impacted these economies that rely on oil and gas supplies from the region.

US President Donald Trump warned on Saturday that he would “obliterate” Iranian power plants if Iran did not open the key Strait of Hormuz shipping route. In retaliation, Iran said it would respond to any such strikes by targeting key infrastructure, including energy facilities, in the region. This escalation follows Iran’s effective blockage of the Strait of Hormuz, a vital passage for global oil shipments, since the US and Israel attacked the country on February 28.

The Strait of Hormuz is critical, as about 20% of the world’s oil and liquefied natural gas usually passes through it. The ongoing conflict has sent global fuel prices soaring, raising concerns about an impending energy crisis. Fatih Birol, the head of the International Energy Agency, warned that the war could see the world facing its worst energy crisis in decades, comparing it to previous oil crises and the impact of Russia’s 2022 invasion of Ukraine.

Other markets across the Asia-Pacific region were also lower on Monday, with Hong Kong’s Hang Seng index down by almost 3.5% and the Shanghai Stock Exchange Composite index 2.5% lower. Despite the turmoil in stock markets, global oil prices were broadly steady, with Brent crude 0.45% higher at $112.69 a barrel and US-traded oil up by 0.7% at $98.93.