📈 Asia-Pacific Markets Plunge on US-Iran Energy Ultimatum

Global markets are reeling following US President Donald Trump’s threat to "obliterate" Iran's energy infrastructure if the Strait of Hormuz is not reopened within 48 hours. The escalating conflict has triggered a sharp sell-off across major indices and spiked energy volatility. • Market Performance Overview: Japan’s Nikkei 225: 📉 Down 4.0% South Korea’s KOSPI: 📉 Down 4.5% Hong Kong’s Hang Seng: Down ~2.0% Australia (ASX 200) & NZ (NZX 50): Down 1.6% and 1.3% respectively. • Energy & Commodity Impact: Brent Crude: Surged above US$ 114 per barrel before settling near US$ 112. Oil prices have climbed over 50% since the conflict began on February 28. Analysts warn of a "cascading global energy crisis," with projections suggesting oil could hit US$ 150–200 per barrel if the blockade persists. • Economic Context: The Strait of Hormuz is a critical chokepoint for one-fifth of global oil and gas exports. For Sri Lanka, a sustained spike in global energy prices typically pressures foreign reserves, increases transportation costs, and impacts the manufacturing sector due to higher thermal power costs. • Geopolitical Status: Iran has threatened retaliatory strikes on regional energy and water infrastructure and a total closure of the waterway, which currently only sees limited transit by Chinese, Indian, and Pakistani vessels.