Thai stock index dropped 4.6% to 1,344.82 points at the opening bell on Monday, following the negative sentiment in Asian markets as conflicts in the Middle East continued to intensify over the weekend, while crude oil prices spiked as much as 20% to $111 per barrel this morning.
Japanese and South Korean equities dropped sharply at the start of the week, spurring widespread declines across Asian markets following a surge in oil prices above $100 per barrel, the first such move since 2022. The rout saw the Nikkei 225 and Kospi both losing over 6% in early trading, amplifying investor concerns about the impact of higher energy costs.
Losses were especially pronounced among key technology and investment names. Softbank Group Corp registered one of the sharpest declines on the Nikkei 225, plunging nearly 10%. In South Korea, Samsung Electronics, a major index component, slid 8.4%. The drop in chip stocks was even steeper, with SK Hynix falling 9.2%.
Other regional indices followed suit, although to a lesser degree. The Hang Seng in Hong Kong dropped 2.65%, and China’s Shanghai Composite edged 0.62% lower.
The jump in oil prices sparked renewed selling in global markets, with U.S. equity futures also coming under pressure. Futures contracts for the Dow Jones Industrial Average fell more than 1,018 points, or 2.14%. S&P 500 futures declined 2.08%, while Nasdaq-100 futures were down 2.45%.
President Donald Trump addressed the market reaction, stating on Sunday that the current surge in oil prices is a short-term consequence which would recede once the Iranian nuclear threat is resolved. He characterized elevated prices as a very small price to pay for the US, and World, Safety and Peace.
Since the start of the war, oil benchmarks have climbed over 25%, translating to higher fuel costs worldwide. There have also been reports of Iran conducting strikes against petroleum infrastructure in neighboring nations.
The supply outlook has deteriorated further as Iraq, OPEC’s second-largest producer, has suffered a sharp drop in output. According to industry sources, production from Iraq’s three major southern oilfields has plunged 70% to 1.3 million barrels per day, compared to 4.3 million barrels per day prior to the conflict.
Adding to market pressures, Kuwait, OPEC’s fifth-largest producer, announced precautionary reductions in both its oil and refining operations on Saturday, citing threats from Iran concerning the safety of shipping through the Strait of Hormuz. The Kuwait Petroleum Corporation did not specify the scale of the output cuts.
