Trump's Threat to Iran: Global Stock Markets Plunge, Energy Prices Surge

JAKARTA, KOMPAS.com - Global stock markets plunged sharply at the beginning of this week, following escalating tensions between the United States (US) and Iran that have sparked investor concerns over an energy crisis and a global economic slowdown.

The pressure was triggered by a threat from US President Donald Trump, who stated that he would destroy Iran’s power plants if the Strait of Hormuz is not immediately reopened.

That route is one of the vital pathways transporting around one-fifth of the world’s oil and liquefied natural gas supplies.

The deadline was set until just before midnight GMT on Monday.

Quoting The Guardian on Monday (23/3/2026), stock markets in Asia and Europe immediately responded negatively to Trump’s stance.

Japan’s Nikkei index fell 3.4 per cent, China’s CSI 300 weakened by 2.8 per cent, and South Korea’s Kospi plunged by up to 6.5 per cent.

Based on CNBC data, throughout the previous week, the Dow Jones and Nasdaq indices each recorded declines of around 2 per cent, while the S&P 500 weakened by 1.5 per cent.

For the Dow Jones, this marks the first four consecutive weeks of decline since 2023.

In response, Iran has warned that it will destroy critical infrastructure in the Middle East region, including water and energy systems, if the United States carries out its threat.

Disruptions in the Strait of Hormuz have already triggered a global energy crisis.

The head of the International Energy Agency, Fatih Birol, described its impact as equivalent to the combined oil crises of the 1970s and the effects of Russia’s invasion of Ukraine.

Energy prices have consequently surged.