Post by : Shakul

Asian financial markets witnessed a sharp decline on Monday as escalating tensions in the Gulf region rattled global investors and triggered fears of a prolonged economic crisis.

Major indices across the region fell significantly, with Japan’s Nikkei 225 dropping over 3 percent and South Korea’s Kospi plunging more than 6 percent. Markets in Hong Kong and mainland China also recorded heavy losses, marking their worst performance in months.

The sell-off was driven by rising geopolitical tensions between the United States and Iran, particularly over the strategic Strait of Hormuz—a crucial route through which nearly 20 percent of the world’s oil supply passes.

US President Donald Trump issued a stern warning to Iran, demanding the reopening of the waterway within 48 hours or facing severe consequences targeting its energy infrastructure. In response, Iran signaled it could completely shut the strait if military action escalates further.

The ongoing conflict, now entering its fourth week, has significantly disrupted global energy markets. Oil prices surged sharply, with Brent crude crossing $114 per barrel and US crude topping $101, reflecting concerns over supply shortages. Analysts warn prices could rise as high as $150 per barrel if the conflict continues.

The International Energy Agency has cautioned that the situation could evolve into one of the worst energy crises in decades, posing a serious threat to global economic stability. Rising fuel costs are already impacting shipping, aviation, and manufacturing sectors across Asia.

Adding to concerns, surging energy prices have driven up costs for fertilizers and transportation, increasing the risk of global food inflation. Financial markets are also adjusting expectations, with investors now anticipating tighter monetary policies instead of earlier hopes for interest rate cuts.

Experts note that Asian economies, which are heavily dependent on energy imports, are particularly vulnerable to prolonged disruptions. The combination of rising costs, slowing demand, and geopolitical uncertainty is expected to keep markets volatile in the coming weeks.

Meanwhile, safe-haven assets like the US dollar and gold have seen increased demand, reflecting investor caution amid ongoing uncertainty in global markets.

#Global News #Business News #Asia News