The shadow of armed conflicts in the Middle East on the global economy is deepening. Sharp threats between Washington and Tehran have shaken global financial markets. Zamin.uz analyzes the situation in the markets of Asia, which is on the verge of an energy crisis, and the dangerous games around the Strait of Hormuz.
On Monday, a sharp decline was observed on the largest stock exchanges in Asia. This is due to the fact that the confrontation between the USA and Iran has reached a new and dangerous stage. As the military conflict with Iran entered its fourth week, concerns among investors have intensified.
"Black Monday" on exchanges
The main economic indicators of the region are as follows:
- Japan: The Nikkei 225 index plunged by 3.6%.
- South Korea: The Kospi Index suffered a loss of about 6%.
- Hong Kong and China: Hang Seng fell by 3.5%, and the Shanghai Stock Exchange - by 2.5%.
Strait of Hormuz: the "throat" of the world economy
US President Donald Trump has issued a strict ultimatum to Iran: if the strategically important waterway - the Strait of Hormuz - is not fully opened within 48 hours, Iran's major power plants will be destroyed. In response, Tehran announced it would target all energy and water desalination facilities in the region.
For countries like Japan and South Korea, this is a real "spoil." After all, their energy security directly depends on the supply of oil and gas passing through this strait. For information, about 20% of the world's energy resources are transported through this waterway.
On the verge of the most severe energy crisis
The head of the International Energy Agency, Fatih Biral, compared the current situation with the oil crisis of the 70s of the last century and the events of 2022. In his opinion, the current situation is similar to the combination of two oil crises and one gas disaster.
Current market prices:
- Brent crude: Barrel rose to $112.69.
- WTI crude oil: around $98.93.
The escalation of the conflict could lead not only to price increases but also to a global fuel shortage. Israel's missile strikes on the cities of Dimona and Arad further complicate the situation.
Dear fans, in your opinion, can Trump's ultimatum force Iran to retreat? Is the world ready for a new and terrible energy crisis?
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