Kospi, Nikkei, ASX, SGD | Markets in Crisis Mode

Iran Conflict Triggers Kospi's Worst Crash Since 2008, Sends Nikkei to One-Month Lows, and Weakens Regional Currencies

A sudden escalation in Middle East tensions following US and Israeli strikes on Iran has sent shockwaves through Asia-Pacific markets. The effective closure of the Strait of Hormuz—responsible for 20% of global oil flows—has triggered a classic risk-off rotation: equity markets are plunging, regional currencies are weakening against a surging US dollar, and Brent crude has spiked 15% to approximately $81 per barrel. South Korea's Kospi is experiencing its worst two-day decline since the 2008 financial crisis, while Japan's Nikkei and Australia's ASX 200 are logging multi-week lows. Central banks across the region are in wait-and-watch mode as markets digest the implications for inflation, growth, and monetary policy.