Asian Markets Plunge as US-Israel Attack on Iran Triggers Global Market Panic

Asian-Pacific markets plummeted at market opening on Monday, 2 March 2025, amid escalating geopolitical tensions between Iran and the United States-Israel alliance.

The US-Israeli military operation resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, raising concerns about global energy supply disruptions. Market anxiety intensified following statements from US President Donald Trump indicating that military operations in Iran would continue until three slain American military personnel were accounted for.

The conflict, referred to by some as World War III, triggered a surge in global oil prices of more than 8 per cent. West Texas Intermediate and Brent crude were last traded at US$72.52 and US$79.04 per barrel respectively.

Global gold prices also surged significantly as investors rushed to purchase safe-haven assets amidst the escalating conflict. Gold futures recorded gains of 2.3 per cent.

Japan’s Nikkei 225 index fell nearly 2 per cent at market opening, whilst the Topix index declined 2.1 per cent. Australia’s S&P/ASX 200 index weakened by 0.38 per cent in early trading. Hong Kong’s Hang Seng futures index dropped to the 26,465 level from its previous position of 26,630.54.

South Korea’s stock exchange remained closed due to a national holiday.