Asian markets tumble after US strike on Iran

August 31, 2026 (MLN): Asian markets fell sharply Monday as renewed tensions in the Middle East rattled investor sentiment after U.S. forces struck Iranian rocket launchers on Larak Island in the Strait of Hormuz.

South Korea’s Kospi led the regional decline, dropping 3.5%, while Japan’s Nikkei 225 fell 2.16%. Hong Kong’s Hang Seng Index declined 0.88% and mainland China’s CSI 300 slipped 0.61%. Australia’s S&P/ASX 200 bucked the broader weakness, gaining 0.12%, according to CNBC.

The latest sell-off followed a U.S. strike on two Iranian rocket launchers that American officials said were being prepared to launch rockets carrying sea mines into the Strait of Hormuz, raising concerns over a potential escalation and disruption to global trade.

The renewed geopolitical tensions also pushed oil prices higher in early trading. U.S. crude gained 2.1% to $85.14 per barrel, while Brent futures rose 2% to $89.90.

Meanwhile, U.S. stock futures also edged lower, with Dow Jones futures down 85 points, or 0.16%, while S&P 500 and Nasdaq-100 futures each slipped 0.2%.

Wall Street is heading toward the end of August with solid monthly gains, led by technology stocks. The Dow is up 2.1% for the month, while the S&P 500 and Nasdaq Composite are higher by 3% and 4%, respectively.

Technology shares have remained the main driver, with the S&P 500 technology sector gaining nearly 6% during August.

Investors are also monitoring inflation and monetary policy expectations ahead of the U.S. August jobs report due Friday, alongside upcoming manufacturing and services data.

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