Asian stock markets plunge as oil prices surge past $115

Monday 09 March 2026 - 07:00

By: Dakir Madiha

Asian stock markets plunge as oil prices surge past $115

Stock markets across Asia fell sharply on Monday as crude oil prices jumped above $115 per barrel, heightening concerns that escalating tensions between the United States and Iran could damage the global economy.

South Korea’s Kospi index dropped more than 8 percent, triggering a circuit breaker that halted trading for 20 minutes. It marked the second trading suspension in four sessions. Japan’s Nikkei 225 declined about 7 percent, while India’s BSE Sensex plunged 2,338 points shortly after the market opened.

The sell-off followed a sudden spike in crude oil prices linked to fighting in the Middle East that forced several major producers, including Kuwait, Iran and the United Arab Emirates, to scale back production. Brent crude climbed roughly 28 percent to nearly $119 per barrel, while U.S. West Texas Intermediate surged about 30 percent to around $118. According to Ticker News, this represented the largest one day increase in oil prices since 1988.

Shipping through the Strait of Hormuz has also been effectively halted after insurers withdrew coverage for vessels passing through the key waterway. The strait carries more than 20 percent of the world’s oil supply, making it one of the most critical energy routes globally.

The magnitude of the price surge highlights the scale of the disruption. CNBC reported that U.S. crude oil had started the year trading below $60 per barrel.

Financial markets in the United States also reflected the rising tension. The Wall Street Journal reported that futures linked to the S&P 500, Nasdaq 100 and Dow Jones Industrial Average fell about 1.5 percent early Monday. Yahoo Finance said Dow futures dropped more than 1,000 points.

Regional currencies weakened sharply as investors shifted funds toward the U.S. dollar. The South Korean won fell to 1,492 per dollar, its lowest level since early 2009. India’s rupee declined to 92.25 against the dollar, while the India VIX volatility index jumped more than 20 percent.

The market downturn spread across sectors. In India, banking, automobile and state owned companies recorded steep losses, although shares in consumer goods, information technology and pharmaceutical firms proved more resilient. In South Korea, semiconductor giants Samsung Electronics and SK Hynix had already suffered heavy losses earlier in the crisis as fears grew that a wider conflict could disrupt high tech supply chains.

Qian Wang of Vanguard Group described the surge in oil prices as a stagflationary shock for many economies during an interview on Bloomberg Television. She said the economic impact will depend on how long prices remain elevated and whether governments intervene through subsidies or tax reductions.

The situation has prompted the White House to consider stronger measures on energy prices. Reuters reported that U.S. officials are concerned current policies may not be sufficient if the crisis continues.

The Dow Jones Industrial Average fell about 3 percent last week, its steepest weekly drop since April 2025, when tariff concerns rattled financial markets. With oil prices still climbing, investors now face growing uncertainty about whether the geopolitical conflict and its economic consequences will deepen further.