Asian shares decline as hopes dim for resolution in Iran

Asian shares dipped connected Monday (March 23, 2026) , arsenic lipid prices continued to ascent aft US President Donald Trump's latest comments dashed hopes for an aboriginal extremity to the warfare successful Iran.

South Korea's Kospi dove 6.5% to 5,404.77. Hong Kong's Hang Seng slipped 4.0% to 24,279.23, portion the Shanghai Composite declined 3.7% to 3,811.62.

Mr. Trump implicit the play warned the U.S. volition “obliterate” Iran's powerfulness plants if it doesn't afloat unfastened the Strait of Hormuz wrong 48 hours, prompting Tehran to accidental it would respond to immoderate specified onslaught with attacks connected U.S. and Israeli vigor and infrastructure assets successful the region.

“Trump's ultimatum and Iran's retaliatory warnings constituent to a widening struggle that keeps vigor disruption and marketplace volatility elevated with nary wide off-ramp successful sight,” said Ng Jing Wen, expert astatine Mizuho Bank successful Singapore.

Higher lipid prices, which besides shook banal markets connected Friday, dashed hopes for a imaginable upcoming chopped to involvement rates by the Federal Reserve, analysts said.

Before the war, traders were betting that the Fed would chopped rates astatine slightest doubly this year. Central banks successful Europe, Japan and the United Kingdom besides precocious held their involvement rates steady.

In vigor trading, benchmark U.S. crude added $1.76 to $99.99 a barrel. Brent crude, the planetary standard, gained $1.15 to $113.34 a barrel. The terms of Brent crude has zigzagged lately from astir $70 per tube earlier the warfare began to arsenic precocious arsenic $119.50.

In the enslaved market, the output connected the 10-year Treasury finished past week with a leap to 4.38% Friday from 4.2% precocious Thursday and from conscionable 3.97% earlier the warfare started.

The two-year Treasury yield, which much intimately tracks expectations for what the Fed mightiness do, roseate to 3.88% from 3.79%.

In currency trading, the U.S. dollar roseate to 159.53 Japanese yen from 159.22 yen. The euro outgo $1.1526, down from $1.1571.