Asian stock markets declined following the US-Iran war.

Asian stock markets opened lower on Monday, reports BBC. 

 

This was caused by statements about the possibility of escalating military actions between the US and Iran. The conflict has entered its fourth week.

 

It is noted that Japan's main Nikkei 225 index fell by 3.4% in morning trading, while South Korea's Kospi index dropped by nearly 5%.

 

On Saturday, US President Donald Trump stated that if Iran does not open the crucial maritime route—the Strait of Hormuz—the country's power plants could be struck. Iran, in turn, announced that it would target critical regional infrastructure, including energy facilities, in response to such actions.

 

This situation is affecting Japan and South Korea, as they receive a significant portion of their imported oil and gas through this very strait.

 

Following attacks carried out by the US and Israel on February 28, Iran has effectively restricted traffic in the Strait of Hormuz. 

 

According to information, nearly 20% of the world's oil and liquefied natural gas is typically transported through this route. The conflict has led to a rise in global fuel prices.

 

On Monday, the head of the International Energy Agency, Fatih Birol, said this situation could lead the world into one of the biggest energy crises of recent decades. He compared the current situation to the energy crises of the 1970s and the consequences of Russia's invasion of Ukraine in 2022.

 

In a statement on social media, Trump emphasized that if Iran does not fully and unconditionally open the Strait of Hormuz within 48 hours, the US will strike Iran's power plants, starting with the largest facilities.

 

This statement came after Iranian missiles struck the Israeli city of Dimona and before another attack near the city of Arad.

 

On Sunday, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said that if the country's power plants are attacked, the region's energy and water desalination infrastructure would be "destroyed beyond repair."

 

Declines were also observed in other Asia-Pacific markets: Hong Kong's Hang Seng index fell by 2.5%, and Taiwan's main index dropped by 2%.

 

Oil prices remained relatively stable: Brent crude fell by 0.2% to $112 per barrel, while US crude rose by 0.3% to $98.57.