Stock markets across Asia fell on Monday as escalating conflict involving Iran drove oil prices sharply higher, fuelling fears of inflation and a potential global recession, with investors reacting to disruption risks in the Strait of Hormuz and prolonged hostilities.
Japan’s Nikkei dropped 3.4%, South Korea’s benchmark fell 3.0%, and a broad Asia-Pacific index lost 1.3%. European futures also pointed lower.
Meanwhile, oil prices jumped to multi-year highs, with Brent crude nearing $116 a barrel, on track for its biggest monthly rise since the 1990 Gulf War.
Analysts said the surge reflects mounting risks to global supply as key shipping routes face disruption.
“The longer the Strait remains closed, the sharper the drawdown in supplies,” JPMorgan economist Bruce Kasman warned, adding that oil could rise towards $150 a barrel if disruption continues.
The latest spike followed a weekend of escalation. Iran-aligned Houthi forces launched missiles and drones at Israel, while attacks were also reported on regional energy infrastructure, including damage to Oman’s Salalah terminal.
At the same time, the Strait of Hormuz, a critical route for global oil supplies, remains heavily disrupted, with shipping and insurance activity severely curtailed.
The U.S. has increased its military presence in the region, deploying thousands of additional troops, while Iran warned against any potential ground offensive.
Pakistan said it is preparing to host talks aimed at easing tensions, though markets remain sceptical about the prospects for a near-term ceasefire.
Rising energy costs are feeding into expectations of higher inflation and tighter monetary policy.
Analysts warned the shock could tip major economies towards stagflation, with one noting the conflict is now “a powerful driver of global risk” as markets struggle to price its trajectory.
Despite the volatility, traditional safe havens have offered limited relief, underscoring the uncertainty facing investors as the conflict shows little sign of easing.
At least 16 people have been killed after suicide blasts during Friday prayers hit a police compound in Kohat, northwest Pakistan, officials said.&...
The European Union will disburse €3.3 billion ($3.8 billion) to Ukraine for missiles and drones, European ...
Iran's Revolutionary Guards Navy said a Togo-flagged oil tanker was st...
Saudi Arabia said its air defences destroyed a Houthi drone south of Mecca before it could enter prohibited airspace over the holy city, as attacks by the Iran-aligned group deepen regional tensions.
Russian air strikes injured 13 and damaged buildings in the Ukrainian capital of Kyiv and in the Black Sea port city of Odesa in the early hours of Thursday, officials said on the Telegram messaging app.
U.S. President Donald Trump said on Wednesday he hoped the war against Iran was nearing its end and that Tehran wanted to reach a deal, but Iran dismissed his comments as “mixed signals” as the conflict approaches its seventh month.
Iran's Revolutionary Guards Navy said a Togo-flagged oil tanker was struck while attempting to make an “illegal passage” through the Strait of Hormuz, Iranian state media said early on Friday.
The European Union will disburse €3.3 billion ($3.8 billion) to Ukraine for missiles and drones, European Commission President Ursula von der Leyen said after a phone call with Ukrainian President Volodymyr Zelenskyy.
Nigerian billionaire Aliko Dangote launched Africa's biggest-ever share sale on Monday, opening the oil refinery that has remade the country's fuel market to public ownership for the first time.
Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment