Asian markets fall sharply amid Middle East tensions and rising oil

South Korea’s benchmark Kospi led regional losses, plunging more than 10% during trading before recovering slightly. The drop triggered a temporary trading halt on the Korea Exchange after the index fell more than 8%, activating a circuit breaker designed to curb panic selling. By midday, the Kospi was still down about 9 to 10%.

Major technology stocks were among the hardest hit. Shares of Samsung Electronics and SK Hynix declined sharply as investors locked in gains following strong rallies earlier this year driven by demand linked to artificial intelligence technologies.

The selloff spread across the region. Japan’s Nikkei 225 dropped roughly 4%, while Hong Kong’s Hang Seng Index fell about 3%. Mainland China’s Shanghai Composite Index lost more than 1%, and Australia’s S&P/ASX 200 declined around 2%.

Investors have grown increasingly cautious as oil prices climbed amid fears that the conflict involving Iran could disrupt global energy supplies. Brent crude traded above $82 per barrel, while U.S. benchmark crude rose to around $75.

Rising fuel costs have intensified concerns that inflation could accelerate again, potentially limiting the ability of central banks to cut interest rates. Higher borrowing costs and uncertainty over the duration of the conflict have added pressure to global equities.

Earlier, Qazinform News Agency reported that oil prices surged sharply amid escalating tensions in the Middle East following joint U.S. and Israeli strikes on Iran.