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.
More than 800 Afghan families returned from Pakistan and Iran over two days as Afghan authorities continued receiving thousands of people arriving thr...
Japan is carrying out its biggest military buildup since World War II, with Tokyo citing China's expanding military capabilities and increasingly asse...
Türkiye has urged Russia and Ukraine to protect civilian shipping in the Black Sea after a drone struck a Turkish-owned cargo ship, reportedly injuri...
U.S. President Donald Trump says Iran has a "last chance" to sign what he described as "a good document", claiming talks are continuing at Tehran's request with backing from Saudi Arabia, the UAE and Qatar.
Tehran had made plans to strike sites in Ukraine after Kyiv attacked an Iranian cargo ship in the Caspian Sea, a senior Iranian military adviser has said. Iran refrained from taking action after Kyiv said the strike was a mistake, Mohsen Rezaei told the state IRIB TV channel.
Indonesian rescue teams are searching for 28 people still unaccounted for, three days after a passenger ferry caught fire off the coast of Madura island.
Two firefighting helicopters collided while battling a major wildfire in Greece on Sunday, killing two crew members as emergency services continued efforts to contain fires fuelled by extreme heat and dry conditions across Europe.
Nauru, the world’s third smallest country, has changed its name to Naoero, the Pacific island nation’s President said. The new name corresponds to the spelling and pronunciation in the national language.
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces continued criticism over its work with Israel's military and allegations linking its technology to the war in Gaza.a.
Rising trade across the Caspian Sea is strengthening Georgia’s role as a logistics hub and could help the country develop higher-value industries, according to the Asian Development Bank (ADB).
Ford raised its full-year earnings forecast after reporting stronger-than-expected second-quarter adjusted profit, as resilient demand for its vehicles and operational improvements helped offset tariff-related costs.
SK Hynix reported record quarterly profit on Wednesday, but its shares slumped 10 per cent after the South Korean chipmaker fell short of investor expectations built around the artificial intelligence (AI) boom.
Oil prices have fallen more than six per cent as a pause in U.S.-Iran hostilities eased fears of wider supply disruption around the Gulf.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment