On Monday (16 March, 9:10 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific decreased as traders monitored escalating tensions between the United States and Iran, alongside sharp gains in oil prices. U.S. crude futures surpassed the $100 mark amid concerns that military conflict could threaten the region’s energy supply.
On Friday, U.S. President Donald Trump authorized strikes targeting Iranian military locations on Kharg Island, a key oil export terminal for Iran. He also signaled that additional measures could target other nearby energy infrastructure on the island.
According to analysis from Goldman Sachs, the recent spike in oil prices associated with the ongoing hostilities could result in global economic growth slowing by approximately 0.3% over the next twelve months. The bank also expects headline inflation to rise by 0.5% to 0.6%.
Goldman Sachs further indicated that rising natural gas prices could intensify inflationary pressures and pose further obstacles to economic expansion, particularly in Europe and Asia.
Japan’s NIKKEI fell by 0.58% to 53,508.84. Australia’s ASX 200 shrank by 0.36% to 8,586.20, while South Korea’s KOSPI surged by 0.10% to 5,492.47.
As for stocks in China, Shanghai’s SSEC dropped by 0.87% to 4,059.95. Shenzhen’s SZI declined by 0.82% to 14,164.20, and Hong Kong’s HSI slid by 0.08% to 25,445.93.
The U.S. stock markets edged down on Friday as the Dow Jones Industrial Average (DJIA) diminished by 0.26% to 46,558.47. NASDAQ lost 0.93% to 22,105.35, and S&P 500 retreated by 0.61% to 6,632.19. VIX dipped by 0.37% to 27.19.
Oil prices were mixed in early trading on Monday after remarks from U.S. President Donald Trump urging international partners to contribute to security efforts in the Strait of Hormuz. Brent crude futures rose 87 cents to $104.01 per barrel, following Friday’s $2.68 gain. U.S. West Texas Intermediate crude, on the other hand, dropped 20 cents to $98.51 a barrel, reversing part of its nearly $3 increase from the prior session.
Meanwhile, gold futures slumped by 0.82% to $5,020.00 per Troy ounce.
