Deadlock between the United States and Iran over trade in the Middle East puts pressure on the stock market
The main stock exchanges in Asia opened lower this Monday (March 23, 2026). The meltdown is a direct reflection of the standoff between the United States and Iran that increased pressure on the Strait of Hormuz and triggered warnings of instability among investors.
Asian markets are especially sensitive to what happens in Hormuz because countries like China, India, Japan and South Korea are dependent on the oil that crosses the strait to keep their economies running. The continent’s two largest economies – China and India – are the main destinations for the oil that passes through the maritime route.
Read below how the main Asian stock exchanges opened:
- Shanghai (China) – -2,25%;
- China A50 (China) – -1,70%;
- CSI 1000 (China) – –2,68%;
- Hang Seng (Hong Kong) – -3,18%;
- Nikkei (Japan) – -3,68%;
- Kospi (South Korea) – -5,78%;
- STI (Singapore) – -2,11%;
- Nifty 50 (India) – -1,78%;
- BSE Sensex (India) – -1,84%.
WHAT HAPPENED AT THE WEEKEND
The situation in the Strait of Hormuz has put pressure on the global economy since the end of February. The Iranian blockade following US and Israeli attacks against the country has already caused the price of a barrel of oil to soar above US$100 and the war has also hit energy infrastructures in the Middle East that threaten gas supplies around the world.
To unlock the maritime route, the North American president (Republican Party) used his profile on Truth Social on Saturday night (21 March) to . He stated that if the Persian country does not reopen the Strait of Hormuz within 48 hours, the US military will destroy the country’s power plants.
The Iranian response came on Sunday (22 March). Iran’s Revolutionary Guard has said it will close the Strait of Hormuz if the US carries out these attacks. The Strait of Hormuz has been under Iranian control since the start of the war. The country’s government says traffic is restricted to hostile ships only, but that it will be shut down completely if Trump carries out his threat. The deadline ends this Monday (23rd March).
Totally or partially blocked, the situation in Hormuz has already caused an increase in costs in the region that are expected to last for years. In addition to the damage to energy infrastructure, insurance companies have already more than quadrupled the price of their services for ships crossing the region, precisely because of the risk of attacks on ships.
