Asia-Pacific markets set to fall as investors brace for escalating tensions in Mideast
Smoke rises after powerful explosions as the Israeli army announced a new wave of attacks against Tehran, the capital of Iran, on March 21, 2026.
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Asia-Pacific markets fell on Monday as investors weighed rising tensions in the Middle East after the United States and Iran threatened to intensify military hostilities as the war entered its fourth week.
President Donald Trump said Saturday that he would “destroy” Iran’s energy plans if Tehran fails to fully reopen the Strait of Hormuz, a vital artery for global energy flows, within 48 hours.
Iran backed down, threatening to target energy infrastructure and desalination plants in the Gulf if the United States fulfilled its ultimatum.
Iranian Parliament Speaker Mohammed Bagher Galibaf said Saturday He said attacks on the country’s power plants would be “immediately” met with retaliatory attacks on energy and oil infrastructure across the region.
“Critical infrastructure and energy and oil infrastructure in the region will be considered legitimate targets and will be irreversibly destroyed, and oil prices will rise for a long time,” Ghalibaf said in his statement on X. he said.
Galibaf on Sunday expanded the threat US treasury holders were warned that financial institutions that purchase American government bonds and “finance the US military budget” will be considered legitimate targets, as well as military bases.
Crude oil prices were broadly stable in early trading hours on Monday. Brent crude oil lost 0.25% to $111.97 per barrel as of 19:16 EST. US West Texas Intermediate oil fell 0.6 percent to $97.64 per barrel.
of Australia S&P/ASX 200 It was down more than 1.8% in early Asian trading.
of japan Nikkei 225 The Chicago contract was poised to fall at 51,005 points and the Osaka futures contract at 51,020 points, compared with the index’s previous close of 53,372.53.
Hong Kong Hang Seng index Futures traded at 24,725, below the index’s last close of 25,277.32.
Overnight, U.S. stock futures were little changed. The Dow Jones Industrial Average was flat, the S&P 500 lost 0.1%, and Nasdaq Composite futures fell 0.2%.
Three main indices closed last week with declines; The S&P 500 fell more than 1.5%, falling below its 200-day moving average for the first time since May. The Dow and Nasdaq, which saw their first four-week losing streak since 2023, fell around 2 percent last week.
— CNBC’s Fred Imbert contributed to this report.
