Stock markets across Asia experienced significant losses Monday following escalating threats between the United States and Iran over control of a vital oil shipping lane. South Korea's main stock index dropped 5% while other major Asian markets also declined sharply.
TOKYO — Major stock markets across Asia experienced steep declines Monday morning as investors reacted to escalating tensions between the United States and Iran involving critical oil infrastructure.
South Korea’s main stock index, the Kospi, dropped 5% in trading, after initially falling as much as 6.3% before recovering slightly. Japan’s Nikkei 225 declined 4.3% to close at 51,088.30 points.
Other regional markets also posted significant losses, with Hong Kong’s Hang Seng index falling 2.8% to 24,580.11, and China’s Shanghai Composite dropping nearly 2% to 3,879.86.
The market volatility followed weekend statements from both nations regarding the Strait of Hormuz, a vital passage for global oil shipments. On Saturday, U.S. President Donald Trump issued an ultimatum stating America would “obliterate” Iran’s power plants if the strategic waterway was not completely reopened within 48 hours. Iranian officials responded Sunday by threatening to strike important energy facilities and infrastructure if the U.S. carried out its warning.
The ongoing conflict between the two nations has now extended into its fourth week, with both sides making threats targeting essential infrastructure systems.
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