Kathmandu – Rising tensions in the Middle East have triggered a sharp decline in Asian markets on Monday, while oil prices have surged to a five-month high. The market reaction follows coordinated U.S. and Israeli airstrikes on Iranian nuclear facilities, raising fears of disruptions in global energy supplies.
Iran, the world’s ninth-largest oil producer, currently pumps around 3.3 million barrels of oil per day, approximately half of which is exported while the rest is used domestically.
Analysts warn that if Iran retaliates by closing the Strait of Hormuz — a critical chokepoint for global oil shipments — it could have severe consequences for global energy supplies.
Brent crude rose by 2.7% to $79.12 per barrel, while U.S. crude climbed 2.8% to $75.98 per barrel, reflecting market anxiety over potential supply chain disruptions.
Asian stock markets reflected the growing uncertainty. Tokyo’s Nikkei index fell by 0.6%, Seoul dropped 1.4%, and Sydney declined by 0.7%. The broader MSCI Asia-Pacific Index (excluding Japan) also dipped by 0.5%.
In contrast, U.S. markets showed relative stability despite the geopolitical developments, suggesting investors are cautiously monitoring the unfolding situation.
