Asia-Pacific markets traded lower Monday, as investors weigh a U.S. naval blockade on Iran’s ports after talks between Washington and Tehran failed to produce an agreement to end the conflict in the Middle East.
Japan’s Nikkei 225 wallowed 421.34 points, or 0.7%, to close Monday at 56,205.77.
In Hong Kong, the Hang Seng dropped 232.69 points, or 0.9%, to 25,660.85.
The breakdown of negotiations over the weekend in Islamabad reignited worries that the U.S.-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
Crude oil prices surged on Sunday after the talks ended without an agreement and the U.S. moved toward a blockade of Iranian port traffic.
The West Texas Intermediate jumped 7.07% to $103.40 per barrel as of 03:34 a.m. ET. Brent crude gained 6.79% to $101.67 per barrel.
U.S. President Donald Trump has reportedly weighed resuming airstrikes on Iran, according to the Wall Street Journal. Trump last week agreed to a two-week ceasefire on Tuesday in exchange for Tehran allowing ships to pass through the strait. He had previously threatened to bomb every bridge and power plant in Iran.
In other markets
The CSI 300 index in Shanghai nosed ahead 9.59 points, or 0.2%, to 4,646.16.
In Taiwan, the Taiex added 39.46 points, or 0.1%, to 35,457.29.
South Korea’s Kospi subtracted 50.25 points, or 0.9%, to 5,808.62
In Singapore, the Straits Times Index dipped 5.24 points, or 0.1%, to 4,984.17.
In Australia, the AZX 200 skidded 34.57 points, or 0.4%, to 8,926.04.
In New Zealand, the NZX 50 retreated 161.26 points, or 1.2%, to 13,020.18.
