Asian stock markets tumbled sharply in early trading on Monday amid escalating fears over the Strait of Hormuz, following US President Donald Trump’s 48-hour ultimatum to Iran to fully reopen the partially closed strategic waterway or face the “obliteration” of its power plants, oil, and gas facilities.
Japan’s benchmark Nikkei 225 plunged 4 per cent, while South Korea’s KOSPI dropped 4.5 per cent shortly after opening. Hong Kong’s Hang Seng Index fell about 2 per cent in early trade.
Australia’s ASX 200 declined around 1.6 per cent, and New Zealand’s benchmark shed 1.3 per cent.
Wall Street futures, traded outside regular hours, showed moderate losses, with contracts tied to the S&P 500 and Nasdaq Composite down about 0.5 per cent.
Oil prices surged amid concerns of further disruptions to global energy supplies. Brent crude futures rose more than 1.5 per cent to reach $114 a barrel before easing to around $112 as of 02:00 GMT.
Trump issued the warning on Saturday, threatening to strike Iranian infrastructure if the strait—through which about 20 per cent of global oil and LNG trade flows—was not reopened without threats.
Oil prices have surged more than 50 per cent since the US-Israeli war on Iran began with strikes on February 28.
Analysts warn of further spikes if the route remains restricted, with some forecasting Brent could hit $150 or even $200 a barrel in a prolonged disruption scenario.
Also read: West Asia conflict: Indian companies facing shipment delays
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