Key indexes in Japan, South Korea and Hong Kong tumble as Iran threatens attacks on energy infrastructure across region.
Published On 23 Mar 2026
Stock markets in the Asia Pacific have fallen sharply amid United States President Donald Trump’s ultimatum warning Iran to reopen the Strait of Hormuz or face the annihilation of its energy infrastructure.
South Korea’s benchmark KOSPI plunged 6.5 percent on Monday, while Japan’s benchmark Nikkei 225 fell 3.5 percent.
In Hong Kong, the Hang Seng Index tumbled more than 4 percent.
Australia’s ASX 200 closed 0.75 percent lower, while the NZX 50 in New Zealand was down 0.7 percent.
In Europe, London’s FTSE 100 was down 1.4 percent in morning trading, while the DAX 40 in Frankfurt fell about 2 percent.
On Wall Street, US stocks also saw significant losses ahead of Monday’s opening.
Futures tied to the S&P500, which are traded outside regular market hours, were down about 0.8 percent as of 07:00 GMT.
Oil prices remained volatile amid fears of further disruption to global energy supplies.
Brent crude, the international benchmark, was up about 0.6 percent at $112.80 a barrel as of 07:00 GMT.
Trump on Saturday threatened to “obliterate” Iran’s power plants within 48 hours if Tehran does not end its effective blockade of the strait, through which about one-fifth of global oil and natural gas exports usually transit.
Tehran has warned it will completely close the waterway, which is still being transited by a small number of Chinese, Indian and Pakistani-flagged vessels, and launch retaliatory attacks on energy and water infrastructure across the region if Trump follows through on his threat.
Based on the timing of Trump’s warning on Truth Social, the deadline for his ultimatum is set to expire at 23:44 GMT on Monday.
Trump’s threat has added to fears of a cascading global energy crisis as the US and Israel’s war on Iran approaches the one-month mark with no clear end in sight.
Oil prices have surged more than 50 percent since the start of the war, which began with US-Israeli strikes on February 28.
Analysts have warned that energy prices are likely to rise significantly further if the strait remains effectively closed, with some observers predicting oil to hit $150 or even $200 a barrel.
Trump on Sunday held a phone call with United Kingdom Prime Minister Keir Starmer 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”, Starmer’s office said in a statement.
Trump has provided conflicting messages about the goals of the war and how long it might last.
Hours before issuing his ultimatum on Saturday, Trump said his administration was “very close to meeting our objectives as we consider winding down” military operations against Iran.
Israeli military spokesperson Lieutenant Colonel Nadav Shoshani last week told reporters that officials had detailed plans for at least three more weeks of war.
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