HONG KONG (AP) — Asian markets experienced widespread declines Tuesday while petroleum prices remained relatively stable as uncertainty persists regarding potential de-escalation of the ongoing Iran conflict.
Japan’s Nikkei 225 declined 1.2% to close at 51,245.50. The index has seen its year-to-date gains completely erased by losses that began when the Iran conflict started on February 28.
South Korea’s Kospi experienced a sharp 3.4% drop to 5,097.11. Hong Kong’s Hang Seng decreased 0.5% to 24,624.55, and China’s Shanghai Composite index slipped 0.4% to 3,908.28.
Australia’s S&P/ASX 200 bucked the trend with a 0.7% gain, while Taiwan’s Taiex dropped 2.2%.
Early Tuesday trading showed U.S. futures climbing nearly 1%.
As the Iran conflict enters its fifth week, Middle Eastern attacks persist with no definitive resolution in sight. Brent crude futures dipped less than 0.1% to $107.36 per barrel Tuesday, while U.S. benchmark crude gained 0.1% to $102.94 per barrel.
Petroleum prices have soared throughout March, with Brent crude climbing more than 40% since the Iran conflict began.
Tuesday brought news of a drone strike on a Kuwaiti oil tanker in Dubai waters, sparking a fire. Officials report that U.S. Gulf allies are privately pressing the White House, arguing that Iran hasn’t been sufficiently weakened and encouraging President Donald Trump to continue military action. Trump has indicated the U.S. is engaged in negotiations with Iran’s parliamentary speaker, though Iran has denied any such discussions are taking place.
The Strait of Hormuz continues to be a critical concern for global energy supplies, as maritime traffic disruptions affect the waterway through which approximately one-fifth of the world’s oil typically flows. Secretary of State Marco Rubio stated that Trump has “options available” to respond to Tehran’s threats regarding strait control, following reports that Iran has essentially established a “toll booth” in the area.
Monday’s Wall Street session produced mixed results. The S&P 500 fell 0.4% to 6,343.72, the Nasdaq composite dropped 0.7% to 20,794.64, while the Dow Jones Industrial Average managed a 0.1% gain to 45,216.14.
Food distributor Sysco saw shares plummet 15.3% following its announcement of a $29 billion acquisition of supplier Jetro Restaurant Depot.
Early Tuesday precious metals trading showed gains across the board. Gold prices increased 0.7% to $4,587.80 per ounce, while silver jumped 2.4% to $72.25 per ounce.
Currency markets showed the U.S. dollar trading at 159.61 Japanese yen, down from 159.71 yen. The euro strengthened to $1.1472 from $1.1465.
