Asian Stock Markets Fall Amid US-Iran Tensions Over Ultimatum

Stock Markets in Asia-Pacific Plummet Amid US-Iran Tensions

The stock markets in Japan, South Korea, and Hong Kong experienced significant declines on Monday, with the Nikkei 225 and KOSPI indexes falling by 4 percent and 4.5 percent respectively. The Hang Seng Index in Hong Kong dropped about 2 percent.

In Australia, the ASX 200 declined by 1.6 percent, while the NZX 50 in New Zealand fell by 1.3 percent. Futures on Wall Street also saw losses, with those tied to the S&P500 and Nasdaq Composite down about 0.5 percent.

Oil prices remained volatile amid concerns over potential disruptions to global energy supplies. Futures for Brent crude rose more than 1.5 percent to top $114 a barrel before easing to around $112 as of 02:00 GMT.

US President Donald Trump issued an ultimatum on Saturday, warning Iran that it must reopen the Strait of Hormuz or face the potential destruction of its energy infrastructure within 48 hours. Tehran has pledged to completely close the waterway and launch retaliatory attacks on energy and water infrastructure across the region if Trump follows through on his threat.

The deadline for Trump’s ultimatum is set to expire at 23:44 GMT on Monday, adding to fears of a global energy crisis. Analysts have warned that energy prices are likely to rise significantly further if the strait remains effectively closed, with some predicting oil could reach $150 or even $200 a barrel.

Trump held a phone call with UK Prime Minister Keir Starmer on Sunday to discuss the situation in the Middle East, including the effective closure of the strait. The two leaders agreed that unblocking the strait is essential to ensure stability in the global energy market.

Source: Al Jazeera