Asian stock markets tumbled on Monday as the US-Iran war entered its fourth week, with a looming deadline over the Strait of Hormuz intensifying global risk aversion.
South Korea’s Kospi led regional losses, falling 4.71% to 5,509, while Japan’s Nikkei 225 dropped as much as 4% before closing down 3.37%, and Australia’s ASX declined 1.5%.
The sell-off followed a 48-hour ultimatum from US President Donald Trump demanding Iran reopen the Strait of Hormuz or face strikes, with Tehran threatening to shut the route permanently and target regional energy infrastructure.
Brent crude climbed to around $112 per barrel, up more than 55% since late February, as markets priced in potential supply disruptions across a waterway that handles roughly a fifth of global oil and LNG flows.
Rising energy prices have shifted monetary policy expectations, with markets abandoning forecasts for US Federal Reserve rate cuts and instead pricing a small chance of rate hikes as inflation risks intensify.
Japan faces heightened exposure due to its reliance on the strait for about 90% of oil imports, while semiconductor stocks led declines, signalling broader risks to global supply chains.
Bitcoin and major altcoins have continued to track equities closely, declining alongside stocks during risk-off sentiment as geopolitical uncertainty shows no sign of easing.
At the time of reporting, Bitcoin price was $68,433.74.