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Asian Markets Plunge Amid U.S.-Iran Conflict's Energy Shock

3/5/2026

27 4 Full Breakdown

Summary

Story summary

South Korea's Korea Composite Stock Price Index (KOSPI) fell 12% on March 4 after earlier rising 50% this year, triggering a suspension.
Japan's benchmark indexes fell more than 3%.
Taiwan's stock index dropped 4.35%.
Analysts described the sell-off as an "optimism backlash" amid rising energy costs tied to the U.S.-Iran conflict.
The U.S.-Iran conflict disrupted oil transit through the Strait of Hormuz, crucial for Japan, South Korea, and Taiwan.

History

Historical Context

The 1979 U.S.-Iran conflict triggered a severe oil crisis, causing global oil prices to soar by 400%. This followed earlier shocks, including the 1973 oil crisis, which had already strained economies reliant on oil imports. Today, countries like Japan and South Korea face similar vulnerabilities, as rising energy costs threaten economic stability, highlighting the ongoing fragility of energy-dependent nations amid geopolitical tensions.

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Story summary

South Korea's Korea Composite Stock Price Index (KOSPI) fell 12% on March 4 after earlier rising 50% this year, triggering a suspension.
Japan's benchmark indexes fell more than 3%.
Taiwan's stock index dropped 4.35%.
Analysts described the sell-off as an "optimism backlash" amid rising energy costs tied to the U.S.-Iran conflict.
The U.S.-Iran conflict disrupted oil transit through the Strait of Hormuz, crucial for Japan, South Korea, and Taiwan.

1 / 2