Asian Markets Slide as Strait of Hormuz Tensions Rattle Investors

Washington classified the operation as a proportional response to Iranian aggression, yet Tehran’s foreign minister has vowed retaliation. The incident occurred off the coast of Oman, where U.S. officials claim an Iranian Shahed drone struck the helicopter. With roughly one-fifth of the world’s oil supply transiting the strait, traders reacted with caution. West Texas Intermediate crude oscillated around $88.15 a barrel, while Brent crude dipped to $91.36 after peaking above $93 earlier in the session.

Equity markets bore the brunt of the geopolitical anxiety. South Korea's Kospi dropped 6.8%, driven by heavy losses in chip manufacturers: Samsung Electronics fell 8.2% and SK Hynix tumbled 9.6%. Japan’s Nikkei 225 shed 2.2%, and Hong Kong’s Hang Seng retreated 1.3%. While India’s Sensex and Malaysia’s FTSE Bursa KLCI managed marginal gains, broader sentiment remains brittle. Analysts at Swissquote noted that the technology sector, which previously anchored market rallies, is now showing clear signs of exhaustion as volatility climbs.