Asia-Pacific markets tumble as investors brace for a prolonged war in Middle East

New Supreme Leader Mojtaba Khamenei said the Strait of Hormuz should remain shut. The Strait, described as a vital artery for global oil trade, faces a potential closure that would threaten oil flows, likely push oil prices higher and disrupt shipping and supply chains. Markets should monitor oil prices, shipping/insurance risk premia and regional escalation risk for potential widescale market impact.

Analysis

New Supreme Leader Mojtaba Khamenei said the Strait of Hormuz should remain shut. The Strait, described as a vital artery for global oil trade, faces a potential closure that would threaten oil flows, likely push oil prices higher and disrupt shipping and supply chains. Markets should monitor oil prices, shipping/insurance risk premia and regional escalation risk for potential widescale market impact.