Asian Markets Plunge as Iran's Threat to Close Strait of Hormuz Rocks Global Markets

Jakarta — Asian-Pacific stock markets declined at the opening of trading on Tuesday, 3 March 2026. The correction follows the ongoing Iran-US-Israel conflict, which continues to exert pressure on markets.

Global crude oil prices continued to rise following Iran’s statement that it would close the Strait of Hormuz. US crude oil futures rose 0.15 per cent to $71.33, or approximately 1.20 million rupiah (estimated at 16,870 rupiah exchange rate) per barrel, whilst Brent crude rose 7.14 per cent to $78.07, or approximately 1.31 million rupiah per barrel.

According to Kpler data, more than 14 million barrels per day transited the Strait of Hormuz throughout 2025. This volume encompasses nearly one-third of total global crude oil exports distributed through maritime routes.

South Korea’s Kospi index weakened by nearly 2 per cent. However, shares in defence sector companies surged significantly, led by Hanwha Aerospace which jumped 11 per cent at the opening of market trading.

In Japan, the Nikkei 225 index fell 0.42 per cent. Meanwhile, the Topix index declined 0.76 per cent.

Australia’s S&P/ASX 200 index recorded a decline of 0.57 per cent. Hong Kong’s Hang Seng index for futures contracts rose to the level of 26,109 from 26,059.85.

US markets closed mixed. The S&P 500 rose marginally by 0.04 per cent followed by a gain in the Nasdaq Composite of 0.36 per cent.

The Dow Jones Industrial Average fell 73.14 points, or 0.15 per cent, to 48,904.78. This index had briefly fallen to its lowest point after declining nearly 600 points.