Asian markets fall as Iran conflict enters fifth week

Asian stocks fell on March 30, and oil prices rose on March 29 after Tehran warned against a US ground invasion, as more troops were deployed to the region, CNN reports.

Japan’s benchmark index Nikkei 225 led the decline, plunging nearly 5% early Monday. It then pared some losses and was down 4.5% at 10:06 pm ET. South Korea’s Kospi shed 3.7%, and Hong Kong’s Hang Seng index dropped 1.6%.

The Middle East conflict, now in its fifth week, has sent oil prices surging, heightening investor concerns about the long-term impact of the global economy as rising prices add to inflation pressure.

Asian economies are also feeling the brunt of the effective closure of the Strait of Hormuz, a critical oil and gas shipping route, as they rely heavily on energy imports from the Middle East transported through this channel.