Asia Stocks Slide as US and Iran Threaten to Intensify War

Asian stock markets declined on Monday as escalating tensions between the United States and Iran weighed on investor sentiment, with the conflict entering its fourth week.

Japan’s Nikkei 225 fell 3.4% in early trading, while South Korea’s Kospi dropped nearly 5%. Other regional markets also recorded losses, with Hong Kong’s Hang Seng Index down about 2.5% and Taiwan’s benchmark index falling around 2%.

The sell-off followed renewed threats from both Washington and Tehran. US President Donald Trump warned that the United States would “obliterate” Iran’s power plants if the Strait of Hormuz is not fully reopened within 48 hours.

Iran responded by warning that any such action would trigger retaliatory strikes targeting energy and infrastructure facilities across the region.

The Strait of Hormuz, a key global shipping route, has been effectively blocked since late February, disrupting nearly 20% of global oil and liquefied natural gas flows and pushing fuel prices higher.

Japan and South Korea have been particularly affected by the disruption, given their heavy reliance on energy imports passing through the strait.

The International Energy Agency warned that the ongoing conflict could lead to one of the most severe energy crises in decades, drawing comparisons to past global oil shocks.

Global oil prices remained volatile. Brent crude traded near $112 per barrel, while US crude hovered around $98 per barrel.

Analysts said further escalation could deepen market losses and increase pressure on global supply chains, particularly if energy infrastructure in the region is targeted.