Asia-Pacific markets plunge as oil spikes $79: fallout from US strikes on Iran

Following US airstrikes on Iran's nuclear sites, Asia-Pacific markets tumbled with oil prices surging over 2.6% to $79.06 per barrel. This economic shockwave highlights the far-reaching impact of Middle East tensions on global trade, travel disruptions, and investor confidence.

Sources:
The Indian ExpressTravelandtourworldPbs+3
Updated 1h ago
Tab background
Sources: CnbcAljazeeraThe Indian Express+3
Asia-Pacific markets tumbled Monday amid soaring oil prices and geopolitical tensions following U.S. airstrikes on Iran's nuclear facilities at Fordow, Natanz, and Isfahan.

The attacks, which targeted key enrichment and research sites, have raised fears of a wider Middle East conflict, sending oil prices surging to $79.06 per barrel, up 2.62% as of 8:10 a.m. Singapore time.

Stock markets across the region reacted sharply: Japan's benchmark index fell 0.58%, the broader Topix declined 0.48%, South Korea's main index dropped 1.16%, and the Kosdaq plunged 1.99%. Auto stocks led losses, with Japanese automakers tumbling 2.22% and 2.17% respectively.

The U.S. strikes targeted Iran's nuclear sites at Fordow, an underground enrichment facility; Natanz, the largest enrichment site; and Isfahan, an atomic research center. While aboveground damage was reported, experts note that underground facilities, especially at Isfahan, likely remain intact.

Iran's Foreign Minister Abbas Araghchi warned the attacks "will have everlasting consequences" and vowed Tehran "reserves all options" for retaliation. The country's ambassador to the UN accused the U.S. and Israel of seeking to "destroy diplomacy" ahead of planned nuclear talks.

The strikes have also disrupted global travel, with airlines rerouting or suspending flights over the Middle East, and travel insurers raising premiums due to heightened risks.

The Strait of Hormuz, a critical oil transit chokepoint through which 20% of global oil passes, remains a flashpoint amid the escalating tensions.

"We discussed in detail about the current situation. Expressed deep concern at the recent escalations," said Indian Prime Minister Narendra Modi after speaking with Iran's President.

The unfolding crisis underscores the fragile balance in the region and the potential for broader economic and security fallout.
Sources: Cnbc
Asia-Pacific markets plunged Monday as oil prices surged to $79.06 per barrel following U.S. strikes on Iran's nuclear sites at Fordow, Natanz, and Isfahan. The attacks heightened fears of Middle East conflict escalation, prompting sharp declines in Japanese and South Korean stock indices and auto shares.
Section 1 background
The Headline

US strikes Iran; markets plunge, oil spikes

Key Facts
  • US airstrikes targeted Iranian nuclear sites Fordow, Natanz, and Isfahan, escalating regional tensions and sparking fears of wider conflict.Aljazeera
  • PM Modi called Iranian President Masoud Pezeshkian urging immediate de-escalation, dialogue, and diplomacy to restore regional peace and security.The Indian Express
  • Iran warned of everlasting consequences and vowed retaliation, threatening a wider regional war in response to the US strikes.The Indian Express
  • Israel closed its airspace until at least June 27 following retaliatory missile strikes, while major airlines including United, American, and Air Canada suspended flights over the conflict zone.Travelandtourworld
  • Travel insurers saw a surge in claims due to trip cancellations, medical evacuations, and route changes amid the high-risk classification for Middle East travel.Travelandtourworld
  • Experts noted that the Isfahan facility, holding nearly 60% of Iran's enriched uranium, was not fully destroyed, with damage limited to aboveground structures, raising doubts about the strikes' effectiveness.Cnn1
  • Asia-Pacific markets plunged with oil prices spiking to $79.06 per barrel, while major indices and auto stocks in Japan and South Korea fell sharply.Cnbc
Following the US strikes, Iran’s Foreign Minister Abbas Araghchi warned that the attacks “will have everlasting consequences” and vowed that Tehran “reserves all options” for retaliation.
The Indian Express
The Indian Express
The global travel industry is facing one of its most volatile moments in recent history. The United States’ targeted airstrikes on Iranian nuclear facilities have triggered an urgent crisis, crippling Middle Eastern airspace and forcing global airlines to cancel, reroute, or suspend flights.
Travelandtourworld
Travelandtourworld
Iran has spent decades building multi-tiered military capabilities at home and across the region that were at least partly aimed at deterring the United States from attacking it.
Pbs
Pbs
The US entered into the Israel-Iran conflict, striking three key nuclear facilities at , Natanz and Isfahan in attacks that threaten to spiral into wider regional war.
Cnn
1
The US entered into the Israel-Iran conflict, striking three key nuclear facilities at , Natanz and Isfahan in attacks that threaten to spiral into wider regional war.
Aljazeera
Aljazeera
Asia-Pacific markets plunged Monday, after the United States’ attack on three nuclear sites in Iran raised oil prices and investors’ fears of an escalation in the Middle East conflict.
Cnbc
Cnbc
Key Stats at a Glance
Oil price per barrel
$79.06
Cnbc
Oil price surge percentage
2.62%
Cnbc
Percentage of Iran's enriched uranium at Isfahan
60%

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Section 2 background
Background Context

Context on Iran conflict and regional stakes

Key Facts
  • Iran has spent decades building multi-tiered military capabilities aimed partly at deterring US attacks, with a network of militant groups known as the Axis of Resistance.Pbs
  • The Strait of Hormuz is a critical chokepoint through which about 20% of global oil trade passes, making the region strategically vital.Pbs
  • The US maintains tens of thousands of troops in the Gulf region at permanent bases in Kuwait, Bahrain, Qatar, and the UAE, close to Iran.Pbs
  • Experts warn that US and Israeli strikes may only delay Iran's nuclear development rather than eliminate it.Pbs
  • Isfahan's underground nuclear facilities likely remain intact and must be addressed to prevent Iran from developing nuclear weapons, according to US intelligence sources.Cnn1
  • Iran's Ambassador to the UN accused the US and Israel of destroying diplomacy by launching attacks ahead of planned nuclear talks.
  • The US State Department warned of potential demonstrations against US citizens and interests abroad following the strikes on Iran.Aljazeera
Key Stats at a Glance
Global oil trade through Strait of Hormuz
20%
Pbs
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