Iran-US Negotiations Fail, Asian Stock Markets Uniformly Slump

Asian stock markets opened lower. Investors are focusing on the ongoing Middle East war following the surge in oil prices after the United States (US) imposed a blockade on Iranian ports.

Investors are weighing the US naval blockade against Iranian ports after talks between Washington and Tehran failed to produce an agreement to end the Middle East conflict.

Japan’s Nikkei 225 index fell 0.84%, while the Topix weakened 0.42%.

Next, South Korea’s Kospi index dropped 1.83%, while the small-cap Kosdaq stock index fell 1.43%.

In Australia, the S&P/ASX 200 index also weakened by 0.74%.

Meanwhile, the Hong Kong Hang Seng futures index was at 25,964, compared to its previous close of 25,893.54.

Quoting CNBC International, the failure of negotiations over the weekend in Islamabad has reignited fears that the US-Iran war will last longer than expected, causing rising oil prices that will continue to burden the global economy.

Crude oil prices surged on Sunday after the talks ended without agreement and the US moved towards blockading Iranian port traffic. West Texas Intermediate jumped 8.56% to US$104.84 per barrel at 20:01 ET. Brent crude rose 8.61% to US$103.38 per barrel.

For information, US President Donald Trump is reportedly considering continuing airstrikes against Iran, according to the Wall Street Journal.

Trump approved a two-week ceasefire last week from Tuesday as compensation for Tehran’s permission for ships to cross the strait. Previously, he also threatened to bomb every bridge and power plant in Iran.

Last night on Wall Street, Dow Jones Industrial Average futures fell 517 points, or 1.1%. S&P 500 futures dropped 1.1% and Nasdaq 100 futures fell 1.2%.