On Friday (20 March, 9:29 AM, GMT+7, Bangkok time), major indices in the Asia Pacific saw mixed movement as ongoing geopolitical tensions in the Middle East and related energy supply shocks continued to cause volatility. Market sentiment remained cautious after swings on Wall Street overnight, with the conflict’s impact weighing on commodities and equity performance across the region.
The instability follows Iran’s assault on Qatar’s Ras Laffan gas plant, the world’s largest, which was carried out in response to Israeli strikes on Iran’s South Pars field. According to QatarEnergy leader Saad al-Kaabi, these attacks have resulted in the loss of nearly a fifth of the nation’s liquefied natural gas export capacity, projecting this shortfall to last three to five years.
The targeting of vital infrastructure in the region has sharply driven up energy prices, disrupting global supply. Oil futures spiked after news of the strikes, while price gains in gasoline and jet fuel have led to downstream effects in some markets. Metal prices also responded, with gold and silver initially slumping by about 5% and 10% respectively, before moderating. Ed Yardeni of Yardeni Research described the rapid gold sell-off as indicative of panic trading but anticipated stabilization in the market.
A Wall Street Journal report, citing officials, indicated that Saudi Arabia believes oil could surpass $180 per barrel if the current supply interruptions extend into late April.
Amid these developments, President Donald Trump stated that the U.S. did not intend to send troops into the region, while Israeli Prime Minister Benjamin Netanyahu affirmed that Israel would not mount further attacks on Iranian energy facilities, suggesting the conflict could potentially conclude sooner than anticipated.
Major Western allies—including the U.K., Canada, France, Germany, and Japan—jointly pledged support for maintaining security in the Strait of Hormuz, emphasizing their preparedness to ensure freedom of navigation in this crucial energy corridor.
Further, U.S. Treasury Secretary Scott Bessent indicated that the U.S. is considering easing longstanding sanctions on Iranian oil to help temper rising prices, while the White House clarified it does not intend to restrict U.S. oil and gas exports.
The International Energy Agency classified the Middle East conflict as the most severe supply disruption the oil market has ever witnessed, underlining the ongoing challenges facing global energy and financial markets. Traders remain attuned to unfolding events as the energy supply chain continues to adjust to the geopolitical landscape.
Despite the energy market disruption, China’s central bank left its primary lending rates unchanged, maintaining the five-year loan prime rate at 3.5% and the one-year rate at 3%, with Japanese markets closed for a public holiday.
South Korea’s KOSPI added 0.50% to 5,791.80, while Australia’s ASX 200 declined by 0.32% to 8,470.70.
As for stocks in China, Shanghai’s SSEC slid by 0.28% to 3,995.41. Hong Kong’s HSI fell by 0.53% to 25,364.29, while Shenzhen’s SZI increased by 0.78% to 14,010.27.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) lost 0.44% to 46,021.43. NASDAQ dipped by 0.28% to 22,090.69, and S&P 500 diminished by 0.27% to 6,606.49. VIX slumped by 4.11% to 24.06.
As for commodities, oil prices were mixed on Thursday following strikes by Iran on energy sites in the Middle East. In response, the U.S. moved to boost available supply, as President Trump focused on stabilizing markets ahead of the upcoming Congressional midterm elections, where his party seeks to maintain its majority. Brent crude rose $1.27 to $108.65 per barrel, a gain of 1.18%. However, U.S. West Texas Intermediate crude edged lower, settling at $96.14 per barrel, down 18 cents or 0.19%.
This morning, Brent dropped $3.03, or 2.79%, to $105.62 per barrel, and the WTI decreased $2.72, or 2.83%, to $93.42 per barrel.
Meanwhile, gold futures gained 1.86% to $4,691.40 per Troy ounce.
