South Korea's Kospi index dropped 8% to a trading halt on Monday due to escalating Gulf conflict and rising oil prices. Major AI-heavyweights SK Hynix and Samsung Electronics led the selloff, pushing the index into bear market territory, despite remaining the world's best-performing major stock market in 2026.
Asian markets fell Monday amid escalating Gulf tensions and Iran's claim to have closed the Strait of Hormuz, sending oil prices up and reigniting global inflation fears. Brent crude rose 3.3% to $78.50.
US President Donald Trump has renewed threats to seize Iran's main oil export hub, Kharg Island, after declaring an interim ceasefire "over" and warning of further US strikes. The island, which handles 90% of Iran's oil exports, was reportedly attacked by US forces.
Fifteen of 20 India-bound fertiliser ships have safely passed the Strait of Hormuz. Domestic urea production also exceeded targets from April to June, ensuring adequate fertiliser availability for farmers during the kharif season.
Following alleged Iranian attacks, Gulf Arab states condemned Iran, with Kuwait reducing diplomatic ties. Tehran vows immediate retaliation to any hostile act, blaming US-Israeli aggression and US bases in the region for its attacks on Israel. Gulf states deny facilitating attacks.
US stock markets experienced a downturn as tensions in the Persian Gulf and rising oil prices prompted investors to take profits. The Dow Jones, S&P 500, and Nasdaq all closed lower. Tech stocks, particularly in AI, showed resilience.
Following Iranian threats of immediate retaliation for any hostile act, Gulf Arab states condemned Iranian "aggression." Kuwait decided to reduce its diplomatic representation with Iran. Tehran claims US bases in the region were used in attacks against it and to intercept Iranian missiles targeting Israel, a claim denied by Gulf states.
Iran vows immediate retaliation for any hostile act, while Gulf states condemn Iranian "aggression." Kuwait reduces Iranian diplomatic representation. Tensions are fueled by alleged US-Israeli attacks on Iran, with Tehran claiming US bases were used, a charge denied by Gulf nations.
Iran has warned the US of an "immediate and decisive" response to any "hostile act" following recent military exchanges in the Arabian Gulf. The tensions escalate amid ongoing disputes over extending a fragile ceasefire and indirect negotiations between Washington and Tehran.
Kuwait and Bahrain report Iranian drone and missile attacks, with one fatality in Kuwait. The US military conducted "self-defence" strikes on Iran's Qeshm Island in response to earlier Iranian attacks. Diplomacy shows little progress amid escalating conflict.
Kuwait and Bahrain report drone and missile attacks from Iran, while the US military conducted "self-defence" strikes on Iran's Qeshm Island. Diplomatic efforts show little progress amid escalating tensions in the Gulf region.
Kuwait's air defense systems intercepted incoming missiles and drones on Wednesday, with loud explosions heard across the country. Iran's state broadcaster claimed US military installations in Kuwait were targeted in retaliation for US actions, a claim unverified by independent sources.
Kuwait's air defense systems intercepted incoming missiles and drones on Wednesday, with loud explosions reported across the country. Iran's state broadcaster claimed US military installations in Kuwait were targeted in retaliation for US actions in the Persian Gulf, a claim unverified.
The US and Iran are seeking to avoid a return to war following an April 8th ceasefire. Despite ongoing military escalation, diplomatic talks mediated by Pakistan and Qatar continue. Both nations are posturing, with the US maintaining naval and air forces near Iran and Iran potentially using the ceasefire to regroup. The Strait of Hormuz remains closed, impacting global oil and gas supplies.
China's UN envoy Fu Cong urged all parties to exercise restraint and avoid further escalation of tensions in the Gulf during an emergency Security Council meeting on May 19. He called for an immediate ceasefire and a political solution to the ongoing conflict.
For decades, the Strait of Hormuz has been a narrow passage with a big footprint. Whenever it comes under tension, the world is reminded that energy security is less a policy construct than an everyday reality for Asia’s economies, factories and prices. For China, Japan, South Korea, India and Southeast Asia, it has always been more than just a Middle Eastern problem. It is an Asian economic issue. This is why we should not interpret the latest Gulf tensions solely in terms of naval forces,...
China exported a record 68 GW of solar panels, cells and wafers in March 2026 – roughly twice February's level – as tensions in the Persian Gulf shipping corridor following US-Israel military strikes on Iran (Feb 28) triggered an energy crisis. The surge, equivalent to Spain's entire installed solar capacity and 50% above the previous August 2025 record, saw at least 50 countries record all-time highs in Chinese solar equipment imports, reflecting rapid expansion across emerging and developed markets.
