The global stock market is currently flashing bold red at the moment as Iran-US war hostilities continue to impact the global economic order. With Iran announcing the closure of the Strait of Hormuz, the oil markets are on the verge of breaking, with countries busy scurrying for alternatives, imagining the worst-case scenarios in such a case. In the middle of this, Asian markets have been hit the most, with Nikkei, Kospi, Taiwan, and Hong Kong posting severe losses. Moreover, UAE markets have also experienced grave losses due to this war. What are the core elements triggering this global stock plunge mayhem? Let’s explore some of them.
Also Read: Iran Conflict Halts Tankers, Shell Gasoline Prices Surge Globally
Global Stocks Are Bleeding
The stock markets around the world have been gravely impacted due to the rising Iran-US war narratives. This situation has led stock markets to bleed profusely, with Kospi and Nikkei posting extensive gains this morning. South Korea’s Kospi is now down a significant 12.3%, while Nikkei plunged 4.7%. Moreover, Hong Kong and Taiwan have also encouraged serious losses, falling by 3.1% to 3.7%, respectively.
In a latest post by Mario Nawfal, the expert shared a simple analysis, which has triggered this global stock crisis. Nawfal shared how the closure of Hormuz has resulted in spiking the oil prices, which is an essential element to power tech economies like South Korea, Taiwan, and Hong Kong.
“The reason is simple: nearly half of all crude oil heading to Asia passes through the Strait of Hormuz, the exact chokepoint Iran is threatening to turn into a graveyard. Shipping through the strait has already slowed to a crawl. These aren’t just numbers on a screen. South Korea, Japan, and Taiwan power some of the largest tech and manufacturing economies on earth, and all of them run on Gulf oil. Every day this war continues, the economic damage compounds exponentially.”
UAE Markets Crashed Upon Opening
The UAE markets have crashed by 4% upon opening as the Hormuz closure frenzy continues to impact global economic order. The DFM index dropped 4.66% at the open today, indicative of a swift sell-off. In addition to this, the Dubai stock exchange has also put up a temporary 5% limit down threshold to restrict wild violent price swings and sell-offs in the market.