TOKYO: Asian markets tumbled Tuesday as geopolitical tensions spiked following threats from U.S. President Donald Trump to destroy Iranian oil infrastructure.
South Korea’s Kospi fell over 4%, while Japan’s Nikkei slid 2.24%. Both indexes later pared losses.
Oil prices jumped, with West Texas Intermediate rising 3.30% to $106.28 a barrel-its highest close since the war began. Brent Crude climbed 2.23% to $109.78.
Trump warned he would strike Kharg Island, Iran’s main oil export terminal, along with power and water facilities, unless Tehran accepted a new deal.
His comments came despite indications of progress in diplomatic talks. Analysts note such actions risk violating international humanitarian law.
The Strait of Hormuz remains a critical chokepoint for global energy supplies, heightening market sensitivity to any threat to its operation.