Asia-Pacific markets traded lower on Monday as investors weighed a US naval blockade of Iranian ports after talks between Washington and Tehran failed to produce a deal to end the Middle East conflict.
The breakdown of talks over the weekend in Islamabad has reignited concerns that the war between the US and Iran will last longer than feared, leading to higher oil prices that will continue to weigh on economies around the world.
Crude oil prices rose on Sunday after talks ended without a deal and the US turned to blocking Iranian port traffic. West Texas Intermediate crude jumped 8.54% to $104.82 a barrel by 11:45 p.m. ET. Brent crude rose 7.27% to $102.51 a barrel.
US President Donald Trump has reportedly considered continuing airstrikes against Iran, according to the Wall Street Journal. Last week on Tuesday, Trump agreed to a two-week truce in exchange for Tehran allowing ships to pass through the strait. He previously threatened to bomb every bridge and power plant in Iran, SEEbiz reports.
India’s Nifty 50 was the worst-performing major Asian index, down nearly 2%.
Japan’s Nikkei 225 fell 1.09%, while the Topix fell 0.67%. South Korea’s Kospi fell 1.26%, while the small-cap Kosdaq rose 0.26% in choppy trading. In Australia, the S&P/ASX 200 was lower by 0.53%.
Mainland China’s CSI300 index fell 0.12%, while Hong Kong’s Hang Seng index extended early losses and was 1.22% lower.
