Major Asian markets fell following threats of an escalation in the conflict between the US and Iran. Japan’s Nikkei Index dropped 3.5%, while South Korea’s Kospi Index fell 6.5%.
US President Donald Trump warned that he would destroy Iranian power plants if Iran did not reopen the Strait of Hormuz within 48 hours. In response, Iran threatened to strike energy infrastructure across the region.
The blockade of the Strait of Hormuz, which carries around 20% of global oil and gas, has driven up fuel prices and threatens global energy supplies, according to the BBC.
The head of the International Energy Agency (IEA) warned of the worst energy crisis in decades, comparing the situation to the 1970s oil crisis and Russia’s invasion of Ukraine in 2022.
