In brief
Major Asian markets fell sharply on Monday amidst renewed hostilities between the US and Iran, raising concerns over oil supply disruptions. Japan's Nikkei 225 index dropped by 3.4%, and South Korea's Kospi fell by nearly 5% following threats of military action by the US against Iranian power plants. The conflict has already disrupted global energy supplies, pushing oil prices higher and contributing to fears of an energy crisis.
Major stock markets in Asia slumped on Monday after Washington and Tehran threatened to intensify hostilities, as the Iran war enters its fourth week.
Japan's benchmark Nikkei 225 index was 3.4% lower in morning trade, while South Korea's Kospi fell by almost 5%.
US President Donald Trump warned on Saturday that he would obliterate Iranian power plants if Iran did not open the key Strait of Hormuz shipping route. Iran said it would respond to any such strikes by targeting key infrastructure in the region, including energy facilities.
Japan and South Korea have been particularly impacted by the conflict, as they are heavily dependent on oil and gas that would normally pass through the strait.
Iran has effectively blocked the Strait of Hormuz since the US and Israel attacked the country on 28 February.
About 20% of the world's oil and liquefied natural gas (LNG) usually passes through the waterway - and the war has sent global fuel prices soaring.
On Monday, International Energy Agency chief Fatih Birol said that the war could see the world facing its worst energy crisis in decades.
Birol compared the current energy crisis to those of the 1970s and the impact of Russia's 2022 invasion of Ukraine.
This crisis as things stand is now two oil crises and one gas crash put all together, he said.
If Iran doesn't FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!, Trump said in a social media post.
That threat came after Iranian missiles hit the Israeli city of Dimona, and shortly before a second attack on the town of Arad nearby.
Mohammad Bagher Ghalibaf, the speaker of the Iranian parliament, said on Sunday that energy and desalination infrastructure in the region would be irreversibly destroyed if his country's power plants were attacked.
Such action would significantly escalate the conflict, which has already disrupted global energy supplies, pushing up prices and causing fuel shortages.
Other markets in the Asia-Pacific region were also lower on Monday, with Hong Kong's Hang Seng down by 2.5% and the Taiwan Weighted Index losing 2%.
Global oil prices were broadly steady, with Brent crude 0.2% lower at $112 (£84) a barrel and US-traded oil 0.3% higher at $98.57.
