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Iran Conflict Drives Oil Prices, Hits Asian Markets Hard

3/4/2026

Summary

Story summary

The war in Iran is pushing energy prices higher and strengthening the dollar, affecting Asian emerging markets.
Analysts warn sustained oil-price increases could worsen current account deficits for Thailand, South Korea, and India.
The conflict has triggered a selloff in emerging-market stocks, with Korean shares down about 18% this week.
Investors are shifting away from oil-importing nations toward exporters.
India faces heightened risks due to its dependence on oil imports.

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Story summary

The war in Iran is pushing energy prices higher and strengthening the dollar, affecting Asian emerging markets.
Analysts warn sustained oil-price increases could worsen current account deficits for Thailand, South Korea, and India.
The conflict has triggered a selloff in emerging-market stocks, with Korean shares down about 18% this week.
Investors are shifting away from oil-importing nations toward exporters.
India faces heightened risks due to its dependence on oil imports.