KUALA LUMPUR — Asian markets opened sharply lower on Monday following an ultimatum from US President Donald Trump to Iran.
Japan’s Nikkei 225 fell around 5 per cent at the open after Friday’s holiday break. South Korea’s KOSPI also opened down around 5 per cent, while Hong Kong’s Hang Seng index dropped about 2.8 per cent. China’s CSI-300 index, which tracks major mainland stocks, slipped 1.4 per cent at the start of trading.
Bursa Malaysia is closed today in conjunction with the Hari Raya Aidilfitri holidays.
Oil prices have been heavily affected by developments in the Iran crisis. Brent crude, the European benchmark, remained well above US$100 per barrel, trading around US$112, more than 50 per cent higher than before the start of the US-Israeli strikes on Iran.
Over the weekend, Trump warned Iran’s leaders that energy facilities would be destroyed unless the country fully reopened the Strait of Hormuz within 48 hours.
Shipping through the Strait of Hormuz has already been significantly disrupted amid the ongoing war.
Tehran has said the straits is open but not to ships “from enemies”. Ships can navigate the channel provided prior security and safety arrangements are made with Iranian authorities.
In new statements today, Iran warned that energy and critical infrastructure across the region would become “legitimate targets” if its own facilities are attacked.
“Immediately after the power stations and infrastructure in our country are targeted, the critical infrastructure, energy infrastructure, and oil facilities throughout the region will be deemed legitimate targets,” Parliament Speaker Mohammad Bagher Qalibaf said in a statement posted on X.
He also warned that if Iran is forced to attack, “the price of oil will remain elevated for a long time.”
Since early March, Iran has effectively closed the Strait of Hormuz, a key oil transit route that normally handles about 20 million barrels per day and roughly 20 per cent of global liquefied natural gas trade, to most ships.
The closure has driven up shipping and insurance costs, pushed oil prices higher, and raised global economic concerns.
Regional escalation has continued to flare since the US and Israel launched a joint offensive on Iran on Feb. 28, killing so far over 1,300 people, including then-Supreme Leader Ali Khamenei.
Iran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq, and Gulf countries, which it says are targeting “US military assets,” causing casualties and damage to infrastructure while disrupting global markets and aviation.
Meanwhile, the US State Department issued a worldwide security alert Sunday urging American citizens, particularly those in the Middle East, to exercise “increased caution.”
The agency warned that groups supportive of Iran may target US interests and locations associated with Americans around the world. – March 23, 2026