Asia markets fall on oil tops $100 on Middle East tensions

March 13, 2026 (MLN): Asia markets opened on a weaker note Friday after oil prices surged sharply amid escalating concerns that prolonged conflict in the Middle East could disrupt global energy supplies and trigger broader economic uncertainty.

Fresh comments from Iranian leadership intensified fears over a potential supply shock.

Iran’s Supreme Leader, Mojtaba Khamenei, said in a speech late Thursday that the strategically critical Strait of Hormuz a key route for global oil shipments should remain closed, warning that Iran could expand the scope of the conflict if hostilities continue, according to CNBC.

Separately, Alireza Tangsiri, commander of the naval arm of the Islamic Revolutionary Guard Corps, reinforced the threat in a social media post, cautioning that the country could deliver “the harshest blows” to its adversaries.

Global oil benchmarks rallied strongly on Thursday as geopolitical risk premiums surged.

The international benchmark Brent Crude climbed 9.22% to settle at $100.46 per barrel marked its first close above $100 since August 2022.

Meanwhile, West Texas Intermediate futures jumped 9.72% to end the session at $95.73 per barrel.

Market participants are increasingly pricing in the possibility that prolonged disruption around the Strait of Hormuz could tighten global supply and keep oil prices elevated.

Crude prices may remain high in the near term as geopolitical tensions persist. However, some expect supply conditions to gradually stabilize later in the year if oil flows through the Strait of Hormuz resume.

U.S. President Donald Trump attempted to ease concerns over the surge in crude prices, noting that the United States currently the world’s largest oil producer could benefit from higher energy prices.

He reiterated that Washington’s primary objective remains preventing Iran from developing nuclear weapons.

Meanwhile, U.S. Treasury Secretary Scott Bessent said the government would temporarily permit the purchase of sanctioned Russian oil shipments already at sea to help stabilize global energy markets, describing the recent price spike as a temporary disruption.

Equity markets across Asia-Pacific fell as investors reacted to rising geopolitical risks and higher energy costs.

Australia’s benchmark S&P/ASX 200 slipped 0.3% in early trading.

In Japan, the Nikkei 225 dropped about 2%, while the broader Topix declined 1.4%. Shares of Honda Motor plunged more than 6% after the automaker projected its first annual loss in nearly 70 years.

South Korea’s KOSPI slid nearly 3%, while the small-cap KOSDAQ lost close to 2%.

In Greater China, Hong Kong’s Hang Seng Index edged down 0.2%, while mainland China’s CSI 300 managed a modest gain of 0.3%.

Overnight in the United States, major stock indexes ended at their lowest levels of the year as investors reacted to geopolitical tensions and surging oil prices.

The Dow Jones Industrial Average tumbled nearly 740 points, closing below the 47,000 mark for the first time in 2026.

The S&P 500 fell 1.5% to close at 6,672.62, while the tech-heavy Nasdaq Composite declined 1.8% to end at 22,311.98.

Futures trading showed mixed movement ahead of the next session, with Dow futures slightly lower while S&P 500 and Nasdaq futures posted modest gains.

Market participants are now focused on upcoming U.S. inflation figures, particularly the Personal Consumption Expenditures Price Index the Federal Reserve’s preferred inflation gauge.

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