Asia markets decline amid oil rally, geopolitical risks

March 12, 2026 (MLN): Equity markets across Asia declined on Thursday as rising oil prices and intensifying geopolitical tensions in the Middle East unsettled investor sentiment, despite a coordinated move by global energy authorities to release emergency crude reserves.

The selling pressure followed a sharp surge in oil prices, triggered by supply concerns linked to the ongoing Iran war.

In response to the disruption, the International Energy Agency (IEA) declared plans for an unprecedented emergency release of 400 million barrels of crude oil, marked the largest such intervention in the agency’s history.

However, the organization has not yet provided a timeline for when the reserves will be introduced into the market.

Separately, the United States Department of Energy confirmed that the United States will release 172m barrels of oil from the Strategic Petroleum Reserve in an effort to stabilize global energy prices, according to CNBC.

The move was confirmed by Energy Secretary Chris Wright late Wednesday, following earlier remarks from U.S. President Donald Trump indicating that the government would tap into emergency reserves to contain rising fuel costs.

Despite these measures, crude oil prices continued to rally sharply. U.S. benchmark West Texas Intermediate climbed 8.8% to around $95 per barrel, while global benchmark Brent Crude traded about 8.9% higher near $100 per barrel, showing persistent concerns over supply disruptions.

Regional stock markets reacted negatively to the volatility in energy markets.

Australia’s S&P/ASX 200 declined 1.61%, while Japan’s Nikkei 225 fell 1.54% and the TOPIX dropped 1.61%. In South Korea, the KOSPI slipped 1.3%.

Markets in Greater China also traded lower, with Hong Kong’s Hang Seng Index falling 1.12%, while mainland China’s CSI 300 declined 0.6%.

Meanwhile, Wall Street delivered mixed performance overnight as investors assessed developments surrounding the conflict and energy markets.

The Dow Jones Industrial Average dropped 289.24 points, or 0.61%, to close at 47,417.27. The S&P 500 edged down 0.08% to 6,775.80, while the tech-heavy Nasdaq Composite rose 0.08% to 22,716.13.

Oil prices had already moved higher during the previous session. West Texas Intermediate futures settled over 4% higher at $87.25 per barrel, while Brent Crude gained about 4.8% to close at $91.98 per barrel, highlighting persistent volatility in global energy markets.

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