Conflicts in the Middle East caused a sharp decline in Asian markets
The negative impact of armed clashes in the Middle East on the global economy is intensifying. Zamin.uz reports this.
Tensions between Washington and Tehran have caused significant turmoil in global financial markets. The situation in the Asian region and dangerous maneuvers around the Strait of Hormuz are drawing the attention of every analyst.
On Monday, a sharp decline was observed in leading Asian stock exchanges. This downturn resulted from the conflict between the United States and Iran entering a new phase.
Entering the fourth week of the military conflict has further increased anxiety among investors. Economic indicators in the region have become unstable.
Japan's Nikkei 225 index fell by more than three percent. South Korea's Kospi index lost nearly six percent of its value.
Chinese and Hong Kong exchanges also suffered a severe blow, where indices dropped between two and a half to three and a half percent. This situation forced economists to call it Black Monday.
US President Donald Trump sent a firm ultimatum to Iran. According to his demand, the strategically important Strait of Hormuz must be fully opened within forty-eight hours.
Otherwise, major power plants in Iranian territory will be destroyed. Tehran, expressing concern, stated it could target all oil pipelines and desalination facilities in the region.
For Japan and South Korea, this situation is a real crisis. Because their oil and gas supply passes precisely through this waterway.
Twenty percent of the world's energy resources pass through the Strait of Hormuz. The head of the International Energy Agency, Fatih Birol, compared the current situation to the oil crisis of the 1970s and last year's events.
In his opinion, today resembles a combination of two oil crises and one gas catastrophe. In the market, Brent crude prices reached $112 per barrel, while WTI crude approached $78.
The escalation of the conflict could lead not only to rising prices but also to fuel shortages worldwide. Rocket strikes directed at Israeli territory are further complicating the situation.
In your opinion, will this ultimatum force Iran to retreat, or is the world preparing for a new terrible energy crisis?
