Global Markets Slide as Middle East Tensions Escalate, Oil Prices Surge
South Korea’s benchmark Kospi index dropped more than four percent around 0030 GMT, reflecting investor concerns over potential disruptions to global energy supplies.
ERBIL (Kurdistan24) – Asian stock markets fell sharply in early trading on Tuesday, while global oil prices climbed, as tensions in the Middle East intensified following renewed threats from US President Donald Trump against Iran’s key oil infrastructure.
South Korea’s benchmark Kospi index dropped more than four percent around 0030 GMT, reflecting investor concerns over potential disruptions to global energy supplies. Japan’s Nikkei 225 also declined by 2.24 percent before both markets recovered slightly later in the session.
Oil prices surged amid fears of supply shocks. The U.S. benchmark, West Texas Intermediate (WTI), rose 3.30 percent to $106.28 per barrel after closing above $100 on Monday for the first time since the conflict began. Meanwhile, Brent Crude climbed 2.23 percent to reach $109.78 in early Tuesday trading.
The market volatility followed comments by Trump on Monday, in which he threatened to destroy Iran’s primary oil export hub on Kharg Island, along with power generation and desalination facilities, unless Tehran agreed swiftly to a deal.
Trump stated that failure to reach an agreement — including reopening the strategic Strait of Hormuz — could prompt U.S. forces to target “all of their Electric Generating Plants, Oil Wells and Kharg Island.”
Despite the threats, Trump indicated that diplomatic efforts were still ongoing.
However, legal experts have warned that targeting civilian infrastructure, such as power plants and desalination facilities, would violate international humanitarian law and could constitute a war crime.
The developments have heightened uncertainty in global markets, with investors closely monitoring geopolitical risks and their potential impact on energy supplies and economic stability.