Stock indices across the Asia-Pacific region posted significant losses on Monday, as investors reacted to mounting tensions between the United States and Iran concerning control of the Strait of Hormuz. Market sentiment soured after threats of intensified military actions from both nations raised concerns about potential disruptions to energy exports.
Japan’s Nikkei retreated by 4.58%, with South Korea’s Kospi seeing a steeper fall of 5.35%, while Australia’s ASX 200 ended lower by 1.45%.
The downturn followed heightened geopolitical risk after U.S. President Donald Trump issued an ultimatum Saturday evening, demanding that Iran reopen the Strait of Hormuz within 48 hours and warning of military strikes against Iranian power plants if the conditions were not met.
In a message posted on Truth Social, Trump stated that the U.S. would target and “obliterate” various Iranian power facilities, starting with the largest, should Iran fail to comply with his demand to reopen the strategic waterway “without threat.”
In response, Iranian officials warned they would retaliate by attacking U.S. infrastructure, specifically energy and desalination sites in the Gulf. Iran further declared that it would move to close the Strait of Hormuz entirely if the United States moved forward with military action. The strait is a key conduit for oil and commodity shipments from the region.
