Asian markets dropped due to heightened U.S.-Iran hostilities, with Japan's Nikkei and South Korea's Kospi seeing significant losses.
Major stock markets in Asia experienced sharp declines on Monday as tensions between the United States and Iran intensified over the Strait of Hormuz, which has been blocked since late February.
Japan's Nikkei 225 index fell 3.4% in morning trading, while South Korea's Kospi dropped nearly 5%, reflecting the heavy dependence of these countries on oil and gas passing through the strait.
US and Iranian Threats Escalate
US President Donald Trump warned on Saturday via social media that the United States would "obliterate" Iranian power plants if Iran did not fully reopen the Strait of Hormuz within 48 hours.
Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, responded on Sunday, stating that any attacks on Iranian infrastructure would lead to the "irreversibly destroyed" energy and desalination facilities in the region.
The conflict, now in its fourth week, has blocked the strait, a critical channel for about 20% of the world's oil and liquefied natural gas, causing global fuel prices to soar.
Global Energy Crisis Deepens
International Energy Agency chief Fatih Birol stated on Monday that the situation could result in the worst energy crisis in decades, comparing it to the 1970s oil crises and Russia's 2022 invasion of Ukraine.
Other Asia-Pacific markets also declined, with Hong Kong's Hang Seng index down 2.5% and Taiwan's Weighted Index losing 2%.
Global oil prices remained relatively steady, with Brent crude at $112 a barrel and US-traded oil at $98.57, amid ongoing disruptions to energy supplies.
