Asian Markets Plunge After Mojtaba Khamenei Calls for Strait of Hormuz Closure and US Backs Into Corner

Asia-Pacific markets weakened at the opening of trading on Friday, 13 March 2026, with ongoing Middle Eastern conflict serving as the primary pressure point as dwindling energy supplies stoked concerns about a global economic collapse.

Iran’s new Supreme Leader, Mojtaba Khamenei, stated that the Strait of Hormuz, a vital global oil trade route, must remain closed. In a speech on Thursday, 12 March 2026, Mojtaba indicated that Teheran could open another front in the war should the conflict continue.

Commander of the Iranian Revolutionary Guard Corps Navy, Alireza Tangsiri, reinforced Iran’s threats in a social media post, warning of severe strikes against aggressors.

The United States, the world’s largest oil producer, stands to benefit from rising oil prices. However, markets anticipate the US economy faces a heightened risk of entering recession this year, with the probability increasing to 32 per cent, the highest level recorded so far in 2026.

According to CNBC International, Japan’s Nikkei 225 index plunged 2 per cent. Meanwhile, the Topix index fell 1.4 per cent.

In South Korea, the Kospi index declined nearly 3 per cent. The Kosdaq index, comprising small-cap stocks, dropped nearly 2 per cent.

Australia’s S&P/ASX 200 index weakened 0.3 per cent in early Asian trading. Hong Kong’s Hang Seng index traded lower at 25,467.

Wall Street also suffered significant losses, marking its lowest close of 2026. The Dow Jones Industrial Average fell nearly 740 points, dipping below 47,000 for the first time this year.

The S&P 500 lost 1.5 per cent, settling at 6,672.62. The Nasdaq Composite fell 1.8 per cent to 22,311.98.