Asian markets experienced widespread declines on Thursday as investors grappled with ongoing uncertainty surrounding the Iran conflict and its impact on global oil supplies. Tokyo’s Nikkei 225 dropped 0.3%, while South Korea’s Kospi fell sharply by 1.9%. Hong Kong’s Hang Seng and Shanghai Composite indexes also retreated by 1.4% and 0.6%, respectively.
Oil Prices Rally Amid Strait of Hormuz Concerns
Brent crude, the international benchmark, surged 1.3% to $98.51 per barrel, while U.S. crude rose 1.6% to $91.75. The Strait of Hormuz, a critical oil passageway, remains largely closed due to Iran’s military actions, disrupting approximately 20% of global oil shipments. Since the conflict began, oil prices have climbed nearly 40%, contributing to market volatility.
“The closure of the Strait of Hormuz has created a significant supply bottleneck, driving prices higher and compounding economic pressures,” an analyst noted.
U.S. Ceasefire Proposal Rejected by Tehran
The Trump administration’s 15-point ceasefire proposal was dismissed by Iran, escalating tensions further. Meanwhile, Iran launched additional attacks on Israel and Gulf Arab nations, prompting Israeli airstrikes on Tehran and U.S. troop deployments to the region.
In other market developments, Wall Street closed higher on Wednesday, with the S&P 500 gaining 0.5%. However, early Thursday trading saw gold and silver prices fall, while the U.S. dollar weakened slightly against the Japanese yen and euro.
The ongoing conflict underscores the fragility of global energy markets and its repercussions for American consumers and workers, particularly in industries reliant on stable oil prices.