- The Korean Stock Exchange was forced to halt trading as its Kospi and Kosdaq indexes plunged over 10%, triggered by escalating Middle East conflict.
- Donald Trump stated the US can fight wars “forever” and may escort tankers through the Strait of Hormuz, intensifying regional instability.
- Crude oil prices surged, with Brent jumping 14% to $82 per barrel, heavily impacting major oil importers like South Korea and Thailand.
- Cryptocurrency markets showed relative resilience, with total market capitalization down only 0.5% amid a massive global stock selloff.
- A crypto researcher labeled the crisis a “black swan event,” suggesting it’s the worst geopolitical shock since 1973.
A sharp escalation of conflict in the Middle East triggered a catastrophic stock market crash across Asia on Wednesday, forcing South Korea to halt trading. The Kospi and Kosdaq each plunged more than 10%, marking their worst session since August 2024, Iran-war-middle-east-5968971″ rel=”noopener nofollow” target=”_blank”>according to Channel News Asia. Japan‘s Nikkei fell nearly 4%, while markets in Hong Kong and China also posted significant losses.
Donald Trump declared the US has a “virtually unlimited supply” of weapons and wars can be “fought forever,” he said on Truth Social. Consequently, he announced the United States Navy would begin escorting tankers through the threatened Strait of Hormuz if necessary.
These events caused crude oil prices to skyrocket, with Brent surging 14% to $82 per barrel. This had a severe impact on major oil importers, as Bianco Research CEO Jim Bianco noted South Korea gets 75% of its oil from the region. Thailand’s stock exchange slid 7.8% for the same reason.
However, cryptocurrency markets exhibited notable stability amidst the turmoil. Total crypto market capitalization declined just 0.5% to $2.39 trillion, according to data, despite a 21% year-to-date loss. Meanwhile, crypto researcher SungHoon Lee called the situation a “black swan event,” explaining $3.2 trillion in global stock value evaporated in four days.
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