Asian markets plunge as Trump threats escalate tensions
Asian stocks tumbled after renewed warnings from Donald Trump dashed hopes of a near-term de-escalation in the Iran conflict.
Japan’s Nikkei 225 fell 3.5% to 51,511.75, while Taiwan’s Taiex dropped 2.5% to 32,722.50. Australia’s S&P/ASX 200 slipped 0.7% to 8,365.90.
Losses were sharper elsewhere, with South Korea’s Kospi plunging 6.5% to 5,404.77. Hong Kong’s Hang Seng Index declined 4.1% to 24,250.44, and China’s Shanghai Composite fell 3.8% to 3,806.29.
Over the weekend, Trump warned the US would “obliterate” Iran’s power plants if the Strait of Hormuz is not reopened within 48 hours. Tehran responded by threatening to target US and Israeli energy and infrastructure assets across the region.
Rising oil prices have added to market pressure, with Brent crude holding around $113 a barrel, reinforcing fears of prolonged inflation and reducing expectations for global interest rate cuts.
Wholesale gas prices in Europe climbed in early trading as energy markets remain on edge.
The UK month-ahead contract rose 3.1% to 155p per therm, leaving prices almost double where they were before the Iran conflict began.
The weakness followed a sell-off on Wall Street, where the S&P 500 fell 1.5%, marking its fourth consecutive weekly decline. The Dow Jones Industrial Average dropped 1%, while the Nasdaq Composite slid 2%.
Spot gold has dropped by 4.6% today to $4,280 an ounce, hitting a nearly four-month low. Gold is suffering from rising expectations of higher global interest rates, traders say.
