Asia Stocks Fall Amid US-Iran Tensions

Major Asian stock markets plunged on Monday as tensions between the US and Iran escalated in the fourth week of the Iran war.
Japan’s Nikkei 225 dropped nearly 3.6%.
South Korea’s Kospi fell almost 6%.
The drop follows threats from US President Donald Trump, who warned he would “obliterate” Iranian power plants if Iran did not reopen the Strait of Hormuz, a crucial oil shipping route. Iran responded that any attack would target key regional infrastructure, including energy facilities.
The Strait of Hormuz, blocked by Iran since a US-Israel attack on February 28, carries about 20% of the world’s oil and LNG. Disruption has caused global fuel prices to surge.
International Energy Agency (IEA) chief Fatih Birol warned the world could face its worst energy crisis in decades, comparing the situation to the 1970s oil crises and the energy disruptions after Russia’s 2022 invasion of Ukraine. Birol described it as “two oil crises and one gas crash put together.”
Impact: Japan and South Korea are particularly vulnerable due to heavy reliance on oil and gas transported through the strait.