US and Israeli military operations in the Persian country caused instability in Asian markets; airline shares plummet
Asian stock markets opened lower this Monday (2 March 2026). The retreat is the result of military incursions by the United States and Israel against Iran, which began on Saturday (Feb 28). Iranian retaliations against US bases in the Middle East amplified the confrontation zone, causing the cancellation of hundreds of flights and an increase in commodity prices.
Hong Kong’s Hang Seng index was the worst performer, falling 1.83% at market open. The Japanese Nikkei 225 fell 1.70% and the Indonesian IDX Composite fell 1.54%. Other exchanges also registered a fall, such as the FTSE China 50 (-1.43%), Malaysia’s KLCI (-1.02%) and the Indian Nifty 50 (-1.41%).
The conflict in the Middle East mainly impacted airlines, which were forced to cancel flights. Iran, Israel, Jordan and Iraq closed their airspace on Saturday (Feb 28) and most companies had to offer refunds to their customers or the possibility of rescheduling trips. Companies such as Japan Airlines, Air China and China Southern Airlines opened trading with a decline of up to 5% in shares.
Another sector impacted was commodities. The future price of oil has risen more than 6.5% since the start of the confrontation and has been trading above US$77, according to the specialized website . The value of oil directly impacts airline fuel.
The outlook for oil is that the value should rise in the coming days. Iran threatens to completely close the Strait of Hormuz, a passage that concentrates around 20% of world oil trade. The Iranian Armed Forces have already attacked vessels passing through the region over the weekend.
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