Market response to U.S. and Iranian tensions over the Strait of Hormuz

Asia-Pacific markets experienced volatility as investors reacted to escalating tensions between the U.S. and Iran. U.S. President Donald Trump issued an ultimatum on Sunday, demanding the full reopening of the Strait of Hormuz by Tuesday at 8 p.m. ET, threatening attacks on energy and political infrastructure. The White House clarified that this deadline relates to an agreement between Washington and Tehran. In response, Iran rejected the ultimatum, stating the Strait would only open if they received compensation for war damages. Meanwhile, Iran continues to target economic and oil infrastructure in the Gulf, including facilities in Kuwait. Markets in Hong Kong, Australia, mainland China, New Zealand, and Taiwan were closed for holidays, while Japanese and Korean stocks showed mixed results. Oil prices rose as global markets evaluated the risks of the ongoing conflict.