Asian stock markets have plummeted following US President Donald Trump's warning to Iran to reopen the Strait of Hormuz or face severe consequences. Japan's Nikkei 225 and South Korea's KOSPI indexes tumbled 4 percent and 4.5 percent, respectively, in early trading on Monday.
In Hong Kong, the Hang Seng Index dropped about 2 percent, while Australia's ASX 200 and New Zealand's NZX 50 fell 1.6 percent and 1.3 percent, respectively. The sharp decline in Asian markets comes amid Trump's ultimatum, which has sparked fears of a global energy crisis.
Futures on Wall Street saw moderate losses, with those tied to the S&P 500 and the Nasdaq Composite down about 0.5 percent. Oil prices remained volatile, with futures for Brent crude rising more than 1.5 percent to top $114 a barrel before easing to about $112 as of 02:00 GMT.
Regional Tensions Escalate
Trump's threat to Iran has added to fears of a cascading global energy crisis, with the US and Israel's war on Iran approaching the one-month mark. Tehran has pledged to launch retaliatory attacks on energy and water infrastructure across the region if Trump follows through on his threat.
The deadline for Trump's ultimatum is set to expire at 23:44 GMT on Monday. The situation in the Middle East has prompted a phone call between Trump and UK Prime Minister Keir Starmer, who agreed that unblocking the Strait of Hormuz is essential to ensure stability in the global energy market.
As the situation continues to unfold, officials and analysts are closely monitoring the developments. The ministry stated that the situation is being closely watched, and the force reported that they are prepared for any eventuality. Witnesses told local media that they are concerned about the potential consequences of the conflict.
Source: Al Jazeera
