Asian Stocks Tumble, Gold Plunges Amid Middle East Conflict

SINGAPORE, March 23 — Asian markets fell sharply as the escalating Middle East conflict rattled global investors and stoked inflation fears. US President Donald Trump issued a 48-hour ultimatum to Tehran to reopen the Strait of Hormuz or face strikes on power plants, prompting Iran to threaten indefinite closure of the vital energy route. The International Energy Agency warned the crisis was “worse than the two oil shocks of the 1970s combined.”

Gold Plunges

Japan’s Nikkei dropped 3.5 per cent, South Korea’s Kospi sank 6.5 per cent, Hong Kong’s Hang Seng fell 3.5 per cent, and Shanghai’s Composite slid 3.6 per cent. Singapore’s Straits Times Index was down 2.3 per cent. Spot gold plunged 8.8 per cent to near US$4,100 an ounce, while futures fell almost 10 per cent, as expectations of higher interest rates drove investors toward yield-bearing assets. Analysts cautioned that prolonged conflict could worsen inflation and disrupt global food security.

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