Asian Stock Markets Today: Nikkei, Kospi Slide Over 2.5% Amid Iran War Escalation, Soaring Crude Oil Prices - NDTV Profit

Asian markets opened the week under heavy pressure, with Japan’s Nikkei and South Korea’s Kospi both sliding more than 2.5%. The trigger was a sharp escalation in the Iran conflict, which has reignited fears of supply disruptions in the Middle East. Crude oil prices spiked as a result, and the effect rippled through equity indices that are heavily reliant on energy imports and global trade.

For investors, the move highlights how geopolitical shocks can quickly reprioritize market risk. Higher oil prices tend to raise production and logistics costs, which can squeeze corporate margins and complicate the inflation outlook for central banks. At the same time, such uncertainty often drives capital toward perceived safe havens, making regional equities particularly vulnerable to sudden outflows.

The key variable to watch is whether crude prices sustain their gains or stabilize on diplomatic efforts. If oil continues to climb, markets may start pricing in a more hawkish central bank response. Conversely, any sign of de-escalation could ease investor sentiment just as quickly. For now, the focus remains on how the conflict evolves and what it means for global energy costs.