Asian Markets Tumble, Kospi Plunges 3.5% Amid US-Iran Tensions

Asia-Pacific stock markets moved lower in trading on Monday (31/8/2026) after the United States attacked two Iranian rocket launchers on Larak Island in the Strait of Hormuz, reigniting concerns about escalating conflict in the region.

According to CNBC.com, the attack heightened investor attention to the potential disruption of security and the smooth flow of trade through one of the world’s most important energy shipping lanes.

In Asia, South Korean shares led the regional decline, with the benchmark Kospi index plunging 3.5%. Meanwhile, Japan’s Nikkei 225 fell 2.16% and Australia’s S&P/ASX 200 weakened 0.27%.

US forces struck two Iranian rocket launchers on Larak Island on Sunday (30/8). The US Central Command (CENTCOM) confirmed to MS NOW that Islamic Revolutionary Guard Corps (IRGC) forces were preparing rockets carrying sea mines to be launched into the Strait of Hormuz.

CENTCOM said the action was taken amid efforts to maintain international shipping lanes in the Strait of Hormuz. Last week, US forces completed the clearance of sea mines from international shipping routes in the strait.

“US forces are closely monitoring the region and remain ready to protect the smooth flow of trade through this vital waterway,” CENTCOM told MS NOW. The Strait of Hormuz is a strategic route for global trade, so any threat to regional security has the potential to heighten market concerns over energy supply and trade flows.

The decline in Asian markets at the start of trading reflected growing investor caution over the geopolitical developments. Investors are now watching whether tensions between the US and Iran will widen further and impact shipping activity and global commodity markets.