WireApril 2, 2026 at 10:02 AM
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Asian markets experienced significant declines following U.S. President Donald Trump’s nationwide address on Thursday, in which he signaled continued military action against Iran and called on other nations to take the lead in reopening the Strait of Hormuz. Trump’s remarks, delivered as trading commenced in several Asian markets, included a stark warning that Iran could be bombed ‘back to the stone ages’ if a deal is not reached.
West Texas Intermediate Crude surged past $106 per barrel, intensifying pressure on Asian economies reliant on imported energy. South Korea’s KOSPI fell by nearly 4.5%, Japan’s Nikkei 225 dropped by 2.4%, and Hong Kong’s Hang Seng Index declined by approximately 0.7%. Taiwan’s TAIEX and India’s NIFTY 50 also saw losses of 1.8% and 0.67%, respectively.
The Strait of Hormuz, a critical waterway for Middle Eastern oil and gas exports to Asia and Europe, has been effectively closed since the conflict began. Trump urged countries dependent on the strait to show ‘delayed courage’ and take responsibility for reopening it, stating, ‘Countries of the world that do receive oil through the Hormuz Strait must take care of that passage.’
‘We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on,’ Trump said.
Meanwhile, Iran has consolidated control over the strait, implementing a system that evaluates ships for ties to the U.S., Israel, or other adversaries and negotiates transit fees in Chinese yuan or stablecoins.
Asian nations, heavily reliant on Middle Eastern oil and gas, are now bracing for prolonged energy shortages. The conflict has disrupted shipments of commodities like fertilizer, aluminum, and helium, prompting regional governments to impose export bans on refined fuel products. Southeast Asian countries are exploring alternatives, including reopening coal plants and accelerating nuclear and renewable energy adoption.
Australia, which imports most of its fuel, has been particularly affected. Prime Minister Anthony Albanese outlined measures to secure fuel supplies, including gas tax cuts and diversifying suppliers. ‘Australia is not an active participant in this war, but all Australians are paying higher prices because of it,’ Albanese stated.