Oil Rises, Asia Markets Fall for Third Day Amid Iran War
Asia-Pacific stocks tumble for a third day as Brent crude rises and Strait of Hormuz tensions deepen the global energy crisis.
Stock markets in the Asia-Pacific region fell for the third consecutive day on Wednesday, and oil prices rose as investors monitored developments in the US-Israel war with Iran.
South Korea's Kospi index was down more than 8% in morning trading. Japan's Nikkei 225 was down 3.6%, while the ASX 200 in Australia fell 1.8%.
Brent crude oil rose about 0.7% in morning trading in Asia after rising over the past two days.
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Fighting in the Middle East has shaken financial markets, and global energy prices have risen this week following attacks on ships near the crucial Strait of Hormuz.
About a fifth of the world's oil and gas normally flows through the narrow waterway between Iran and the United Arab Emirates (UAE), but traffic has almost completely halted following Iran's threat to "set fire" to ships.
Traffic through the Strait has almost completely halted following Iran's threats. On Tuesday, President Donald Trump said the US Navy would protect ships in the region "if necessary" to prevent energy supply shortages caused by the fighting.
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He said Washington would provide risk insurance to all shipping companies in the region "at a very reasonable price" to "ensure the free flow of energy around the world." Stock markets have fallen sharply since the US and Israel attacked Iran over the weekend.
Tehran has retaliated with attacks across the Middle East, significantly disrupting shipping and commercial flights. The fighting has weighed heavily on stocks in export-dependent countries like South Korea and Japan, which are particularly vulnerable to geopolitical shocks that threaten shipments.
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