Middle East Tensions Hammer Asia-Pacific Markets: Japan and South Korea Stock Indices Plunge Over 5%, Hong Kong Stocks Turn Red Across the Board

How will AI · Trump’s final ultimatum affect the situation in the Strait of Hormuz?

Cailian Press, March 23 (Editor: Liu Rui) As tensions in the Middle East continue to escalate, Asian-Pacific stock markets plummeted this Monday morning, with major indices in Japan and South Korea falling over 5%, and Hong Kong stocks generally declining.

Signs of ongoing Middle East conflict remain

According to media reports, U.S. President Trump issued a final warning to Iran on the evening of the 21st, demanding that Iran reopen the Strait of Hormuz within 48 hours, or face the risk of energy infrastructure being destroyed.

In response, an Iranian military spokesperson warned that if Iran’s fuel and energy infrastructure are attacked, all U.S. and Israeli energy, information technology, and seawater desalination facilities in the Middle East will become targets.

According to CCTV News, U.S. President Trump also stated on social media over the weekend, “The United States has completely erased Iran from the map.”

On the evening of the 22nd, Iranian President Ebrahim Raisi posted on social media, saying, “Attempting to ‘erase Iran from the map’ is a desperate trampling on the will of a country that has made history. Threats and intimidation will only strengthen Iran’s unity. The Strait of Hormuz is open to all, except those who violate Iran’s territory. Iran will resolutely oppose these crazy threats on the battlefield.”

These statements indicate that the U.S. and Iran may further escalate military confrontation.

Oil price spread reaches near-year high

In early Monday trading, crude oil prices remained generally stable: as of the time of writing, Brent crude fell 0.62% to $111.50 per barrel; WTI crude rose slightly by 0.23% to $98.46 per barrel.

The price difference between Brent crude and West Texas Intermediate (WTI) has exceeded $13 per barrel, the largest gap in recent years between U.S. and international benchmark crude prices.

Chris Verrone, Chief Market Strategist at Strategas Research Partners, said that this widening gap could indicate that “the peak of this oil crisis has been reached.”

He also pointed out that rising oil prices might lead traders to expect the conflict will last longer.

Asian-Pacific stock markets suffer heavy losses

During early Asian trading, Australia’s S&P/ASX 200 index dropped over 1.8%.

Japan’s Nikkei 225 index initially fell 5% at opening, but the decline narrowed slightly to 3.85% as of the time of writing; the Topix index initially dropped over 4%, but the decline narrowed to 3.36%. Since the outbreak of the Iran conflict, the Nikkei 225 has fallen over 10%.

South Korea’s KOSPI index initially plunged over 6% at opening, but the decline narrowed to 5.53% as of the time of writing.

Hong Kong stocks also suffered. The Hang Seng Index opened lower and fell over 2.7% as of the time of writing; the Hang Seng Tech Index initially dropped over 3%.

(Cailian Press, Liu Rui)