Ankara (Commerce Desk): Rising tensions in the Middle East have triggered sharp declines in global financial markets and a significant surge in oil prices, posing serious risks to the global economy.
Following an exchange of threats between U.S. President Donald Trump and Iranian leadership over the Strait of Hormuz, global markets came under pressure. Israel has also indicated that the conflict in the region could continue for several more weeks.
As the war enters its fourth week with no signs of de-escalation, Fatih Birol warned that the world could face one of the worst energy crises in decades, posing a serious threat to the global economy.
Experts caution that rising inflation could force central banks to increase interest rates, while disruptions in fertilizer supply may endanger global food security.
Stock markets across Asia were heavily impacted. Markets in Seoul and Tokyo saw declines of up to 6% and 5% respectively at one point. Hong Kong dropped by over 3%, while Shanghai, Taipei, and Manila also recorded losses exceeding 2%.
Similarly, markets in Sydney, Singapore, and Wellington remained under pressure. South Korea’s currency, the won, weakened to 1,510 per dollar—its lowest level since 2009.
