Asian markets slide as oil surges amid escalating Iran war tensions

Asian stock markets began the week under pressure on Monday as rising oil prices and intensifying tensions in the US-Iran conflict unsettled investors across global financial markets.

Major indices across the region slipped in early trading, reflecting fears that the conflict in West Asia could disrupt global energy supplies and trigger a fresh wave of inflation.

Japan’s Nikkei 225 fell 2.8 per cent to 51,885.85 , while South Korea’s Kospi dropped around 3.0 per cent to 5,277.30 . Australia’s S&P/ASX 200 declined 0.7 per cent to 8,461.00 , and Hong Kong’s Hang Seng slipped 0.8 per cent to 24,750.79 . China’s Shanghai Composite, however, edged up 0.2 per cent to 3,923.29 , recovering slightly after opening lower.

Market anxiety is largely tied to uncertainty around the Strait of Hormuz , one of the world’s most critical oil transit routes. Nearly one fifth of global oil shipments pass through the narrow waterway , making any disruption a serious concern for energy dependent economies, particularly in Asia.

Energy markets have already reacted sharply to the geopolitical tensions. US benchmark crude rose to about USD 101.59 per barrel , while Brent crude climbed close to USD 115.98 . Before the conflict began, Brent crude was trading at roughly USD 70 per barrel , highlighting the sharp spike in global oil prices.

Analysts warn that if the conflict continues or spreads further, oil prices could rise even more, increasing inflationary pressure and slowing economic growth across major economies.

Wall Street has already reflected these concerns. US markets ended last week with heavy losses, recording their fifth straight weekly decline , the longest losing streak in nearly four years. Technology giants were among the biggest drags on the market as investors moved cautiously amid growing geopolitical uncertainty.

Currency markets showed limited movement. The US dollar traded near 160 Japanese yen , while the euro hovered around USD 1.15 against the greenback.

With tensions in the Middle East still unfolding, investors across Asia and global markets are expected to remain cautious in the coming days, closely watching developments that could influence oil supply and the broader economic outlook.