Shares across major Asia-Pacific exchanges lost ground on Monday, as market participants responded to Washington’s decision to begin blocking Iranian ports after dialogue with Tehran failed to resolve the ongoing regional turmoil.
Investor sentiment was pressured by concerns that a prolonged conflict could sustain upward pressure on oil prices, posing challenges for global economies.
Japanese equities saw notable declines, with the Nikkei 225 shedding 1%. In South Korea, the Kospi index registered a 1.17% decrease. Australian stocks trended lower as well, with the S&P/ASX 200 down by 0.53%. Elsewhere, China’s CSI300 index was little changed with a 0.12% decline, while Hong Kong’s Hang Seng Index slipped 1.14%. The movement in regional equities followed a sharp jump in crude oil prices over the weekend, triggered by the U.S. implementation of a naval blockade against Iran after diplomatic talks in Islamabad fell through.
As of 9:56 local time in Bangkok (GMT+7) on Monday, West Texas Intermediate crude advanced 8.58% to reach $104.86 per barrel, while Brent crude prices climbed 7.30% to $102.15 per barrel. The surge reflects renewed fears that an extended conflict could further tighten energy supplies and exacerbate inflationary pressures worldwide.
Donald Trump, President of the United States, announced via Truth Social on April 12, 2026, regarding the negotiations in Islamabad between the US and Iran, saying the meeting went well with consensus on many points. However, the most critical issue—nuclear—remained unresolved.
Trump revealed that the US Navy will immediately implement a “Blockade” to prevent any ship from entering or leaving the Strait of Hormuz. The US President stated that ultimately there should be a regime in which all ships can enter and exit, but Iran would not agree, claiming that there might be mines in the area—information only Iran possesses. He described this as global extortion, and that world leaders, especially the US, would not tolerate being extorted.
Additionally, Trump stated he has ordered the Navy to search and intercept any vessel in international waters that pays a fee to Iran. Those who pay such fees will not be allowed safe passage on the high seas.
