Asian markets fall as Trump vows to bomb Iran back to the stone age and urges nations to lead in reopening Hormuz

(SeaPRwire) –   Asian markets responded negatively to U.S. President Donald Trump’s national address on Thursday. Following over 24 hours of speculation regarding the president’s intentions—ranging from potential ground troop deployments to ceasefire negotiations—the speech instead pointed toward prolonged hostilities and continued energy supply disruptions.

The address coincided with the opening of several Asian trading sessions. During his 20-minute speech, the president stated that U.S. military operations would likely persist for another two to three weeks, threatened to bomb Iran “back to the stone ages,” and warned that power infrastructure would be targeted if a resolution was not achieved.

West Texas Intermediate crude prices climbed above $106 per barrel; the resulting surge in oil and gas costs is expected to place significant strain on Asian economies dependent on energy imports.

South Korea’s KOSPI, which has experienced high volatility since the conflict began over a month ago, declined by nearly 4.5%. Japan’s Nikkei 225 fell 2.4%, while the Hang Seng Index in Hong Kong dropped approximately 0.7%. Taiwan’s Taiex saw a 1.8% decrease. As of 4:30 a.m. Eastern Time, India’s Nifty 50 was down 0.67%.

Reopening Hormuz

President Trump’s rhetoric regarding Iran has fluctuated in recent weeks, shifting between calls for intensified military strikes and suggestions that he might be willing to disengage from the conflict and allow Iran to maintain control over the Strait of Hormuz.

The strait serves as a vital maritime route for Middle Eastern oil and gas destined for European and Asian markets. The waterway has remained effectively blocked since the onset of the war.

The U.S. president has attempted to pressure allies to assist in securing the strait, though these efforts have yielded little success. While nations including the U.K., Australia, and Japan have condemned Iran’s blockade, none have committed to military intervention.

It appears the president’s patience has reached its limit. In his address, he urged other nations to demonstrate “delayed courage” by taking control of the strait themselves, suggesting that a “decimated” Iran would be unable to mount significant opposition.

“Countries of the world that receive oil via the Hormuz Strait must take responsibility for that passage,” the president stated. “We will assist, but they should take the lead in safeguarding the oil they rely on so heavily.”

Meanwhile, Iran is rapidly formalizing its authority over the strait, asserting the right to determine which vessels may transit the waterway and the fees required for passage.

According to a Bloomberg report on Wednesday, Iran first screens ships to ensure they lack ties to the U.S., Israel, or other nations it considers adversaries. Subsequently, negotiations for transit fees—payable in stablecoins or Chinese yuan—commence, with more favorable rates offered to allied nations.

The Asia energy crisis

Asia, which sources a large portion of its oil and gas from the Middle East, is preparing for a protracted energy crisis. Shortages have prompted various Asian nations to implement export restrictions on refined fuel, creating ripple effects throughout the region. The conflict in Iran is also disrupting the supply chains for other commodities, including aluminum, helium, and fertilizer.

Countries in Southeast Asia are currently attempting to ration fuel and reduce energy consumption to maintain reserves. They are also exploring alternative power generation methods, such as restarting coal-fired plants and accelerating the development of nuclear and renewable energy sources.

On Wednesday, Australian Prime Minister Anthony Albanese delivered a national address outlining his government’s strategy to secure fuel supplies. Australia, which imports the majority of its fuel, has been severely impacted by shortages of jet fuel and petrol. The government has reduced fuel taxes and is seeking alternative suppliers.

“Australia is not a direct participant in this war, yet all Australians are bearing the cost through higher prices,” Albanese remarked.

Airlines in Vietnam and the Philippines are canceling flights, and governments across the region have introduced four-day work weeks for public sector employees. (On Thursday, Malaysia mandated that civil servants work from home starting April 15.)

Several Asian governments also provide fuel subsidies, which are becoming increasingly costly as oil prices rise. On Tuesday, Indonesia restricted the volume of subsidized petrol available to consumers. These subsidies threaten to destabilize Jakarta’s already tight budget, leading the government to consider cutting social programs, such as the free-meals initiative that is a cornerstone of President Prabowo Subianto’s platform.

South Korea is also facing significant hardship due to its reliance on imported liquefied natural gas and oil. The government is considering implementing driving restrictions for the first time since 1991 if prices continue to climb, and officials are requesting an additional $17.3 billion in spending to support the economy.

“This crisis is not a brief shower that will soon pass, but a major storm of uncertain duration, which makes it all the more dangerous,” South Korean President Lee Jae Myung told lawmakers on Thursday.

“If we conserve every drop of fuel and avoid wasting even a single plastic bag, we can navigate through this tunnel of crisis safely and quickly.”