Asian Stocks Tumble as Oil Soars on Middle East Conflict
Asian markets took a big hit on Monday as oil prices shot up nearly 30% amid the ongoing US-Israeli conflict with Iran. Investors, already nervous about high tech valuations and AI spending, scrambled as crude hit levels not seen since the Ukraine invasion in 2022.
US President Donald Trump fueled concerns, saying the war won’t end until Iran surrenders unconditionally. He called the oil spike a “small price to pay” to eliminate Iran’s nuclear threat.
Oil and Energy
- West Texas Intermediate (WTI) jumped 30% to nearly $120 a barrel.
- Brent crude also rose about 30% to just under $120 a barrel.
- European gas prices climbed 30%.
Attacks on oilfields in southern Iraq and northern Kurdistan forced some production to halt, while the UAE and Kuwait reduced output. Traffic through the Strait of Hormuz, a key route for global oil, has been blocked since February 28.
The energy crunch is adding pressure on global markets, fueling fears of higher inflation and making it harder for central banks to cut interest rates to boost growth.
Stock Market Impact
- Seoul’s Kospi fell 6%, Tokyo dropped 5.2%, and Taipei lost 4%.
- Hong Kong, Shanghai, Sydney, Singapore, Manila, Bangkok, Mumbai, Jakarta, and Wellington also saw sharp losses.
- European and US futures dropped over 1%, while the dollar strengthened as investors sought safe havens.
Gold also dipped over 1% to around $5,100 an ounce as rising energy costs put inflation fears in focus.
Analyst Take
Stephen Innes of SPI Asset Management said, “This isn’t just a headline shock—physical oil supply is being disrupted. Oil above $100 becomes a tax on the global economy.”
Michael O’Rourke of JonesTrading added, “The worst may be yet to come. Expect a risk-off mood until there’s tangible positive news.”
Key Prices & Indexes (Monday close)
- WTI: $104.87 (+15.4%)
- Brent: $108.72 (+17.3%)
- Seoul – Kospi: 5,251.87 (-6.0%)
- Tokyo – Nikkei 225: 52,728.72 (-5.2%)
- Hong Kong – Hang Seng: 25,307.83 (-1.7%)
- Shanghai – Composite: 4,096.60 (-0.7%)
- Dow: 47,501.55 (-1.3%)
- FTSE 100: 10,284.75 (-1.2%)
- Euro/Dollar: $1.1550
- Dollar/Yen: 158.50
In short, energy worries and geopolitical tensions are hitting both markets and wallets hard, and investors are bracing for continued turbulence.
