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Asian equity markets plunged as surging oil prices triggered a global sell-off. Japan’s Nikkei 225 fell 6.22%, TOPIX dropped 5.27%, and South Korea’s Kospi Index plunged 6.68%.
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Asian equity markets plunged on Monday as surging oil prices triggered a broad global risk-off sell-off, with investors dumping equities and moving to safer assets amid escalating tensions in the Middle East. Follow Stock Market Live Updates
The sharp market reaction came after crude oil prices breached $100 per barrel for the first time since 2022, raising fears of a major energy shock that could drive inflation higher and slow global growth.
Asian Markets Tumble
Japan’s Nikkei 225 slumped 6.22%, falling below the 53,000 mark for the first time since February 6, while the broader TOPIX dropped 5.27%.
South Korea’s Kospi Index plunged 6.68%, triggering a temporary trading halt in Kospi 200 futures. The benchmark had already activated a circuit breaker last Wednesday after crashing more than 12% in a single session, its worst daily fall on record.
Futures for Hong Kong’s Hang Seng Index also signalled a sharply lower opening.
Oil Surge Fuels Global Market Meltdown
The sell-off was driven by a massive spike in oil prices after several Middle Eastern producers—including Kuwait, Iran, and the United Arab Emirates—curbed production following the disruption of shipping through the Strait of Hormuz amid the ongoing US–Iran conflict.
Global benchmark Brent Crude Oil jumped 18.03% to $109.40 per barrel, while West Texas Intermediate Crude Oil surged 20.23% to $109.29. Both benchmarks touched levels last seen during the early months of the Russian invasion of Ukraine.
Higher oil prices are a major concern for global markets because they can push inflation higher, increase energy costs for businesses, and reduce consumer spending, potentially slowing economic growth worldwide.
Trump Downplays Oil Spike
Despite the sharp jump in oil prices, Donald Trump dismissed the surge as a temporary consequence of the conflict.
“Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, are a very small price to pay for U.S.A. and world safety and peace,” Trump wrote on social media Sunday evening in Washington.
Asian Economies Particularly Vulnerable
Asian markets were hit especially hard because many economies in the region are heavily dependent on imported oil.
Japan is the world’s fifth-largest crude importer, with roughly 95% of its oil coming from the Middle East and around 70% of shipments passing through the Strait of Hormuz.
South Korea, the fourth-largest crude importer globally, is also highly exposed to disruptions in Middle Eastern supply.
US Stock Futures Slide
The turmoil extended to global markets, with US stock futures also falling sharply.
Futures linked to the Dow Jones Industrial Average dropped more than 800 points, or 1.75%, while S&P 500 futures declined 1.59% and Nasdaq 100 futures slipped 1.6%.
India Set For Weak Start
Indian markets are also expected to open sharply lower. Early indicators show a weak start, with GIFT Nifty trading around 23,780, nearly 766 points below the previous close of Nifty futures.
The sharp drop in GIFT Nifty signals a likely gap-down opening for the benchmark indices — Nifty 50 and BSE Sensex — as global markets react to the escalating energy shock.
March 09, 2026, 09:15 IST
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