Asia-Pacific Markets Plunge Amid Escalating US-Iran Conflict

Jakarta, CNBC Indonesia - Asia-Pacific equities collapsed during trading on Monday 2 March 2026 after tensions between the United States, Israel, and Iran intensified following reports of the death of Iran’s Supreme Leader Ali Khamenei.

According to CNBC, this situation triggered market concerns about potential disruptions to global energy supplies and heightened geopolitical tensions in the Middle East region.

United States President Donald Trump stated on Sunday that military operations in Iran would continue following the deaths of three American military personnel. This statement worsened global market sentiment and prompted investors to shift towards safe-haven assets.

Crude oil prices surged more than 8%, with West Texas Intermediate and Brent futures contracts trading at US$72.52 and US$79.04 per barrel respectively. Meanwhile, gold contracts rose 2.3% as investors sought defensive assets amid growing uncertainty.

In Japan, the Nikkei 225 index fell nearly 2% at the opening of trading, whilst the TOPIX declined 2.1%. However, defence company shares such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI Corporation strengthened by more than 1%.

In Australia, the S&P/ASX 200 index fell 0.38% at the start of trading. Meanwhile, Hang Seng Index futures were at 26,465, lower than the previous close of 26,630.54.

South Korean stock markets were closed for a national holiday. In the United States, stock index futures also weakened with Dow Jones Industrial Average futures down 517 points or approximately 1%, whilst S&P 500 and Nasdaq-100 declined roughly 1% and slightly more than 1% respectively.