Asia stocks fall as oil rises for a third day on Iran war concerns

Asian stock markets extended losses for a third straight session on Wednesday. Investors closely monitored developments in the escalating US-Israel conflict with Iran. Oil prices climbed again as fears of supply disruptions intensified. Brent crude gained nearly 2.8% during afternoon trading in Asia. Rising tensions in the Middle East unsettled global financial markets.

South Korea and Thailand temporarily halted trading after sharp market plunges. Both markets triggered circuit breakers after falling more than 8%. Authorities used these mechanisms to prevent panic-driven selling. South Korea’s Kospi index closed 12% lower, marking a historic drop. Japan’s Nikkei 225 also declined by 3.6% by the end of trading.

Also Read: US-Israel-Iran War Explained Through Maps, Graphics and Images

Asian shares fall again as oil prices climb on Iran war fears

Hong Kong’s Hang Seng fell 2.5% during afternoon trading hours. China’s Shanghai Composite slipped by 0.8% amid cautious sentiment. Markets reacted to threats targeting the Strait of Hormuz shipping lane. Nearly one fifth of global oil flows through this narrow waterway. Iran’s warnings disrupted traffic and raised fears of energy shortages.

President Donald Trump said the US Navy would protect regional shipping if necessary. He pledged risk insurance support to stabilize energy transportation. He emphasized maintaining the free flow of energy worldwide. Energy-importing Asian nations felt pressure from rising oil costs. Export-driven economies like Japan and South Korea faced heightened vulnerability.

China’s markets showed relatively limited impact compared to regional peers. Analysts said China’s diversified energy sources provided a protective buffer. Beijing continues importing oil from Russia and other suppliers. Investors now worry about a prolonged and expanding conflict. Global markets, including Europe and the US, also posted notable declines.

Also Read: Yash postpones Toxic avoids clash with Dhurandhar 2