Markets in Freefall: Hormuz Closure Hammers Global Economy
Kospi halted at -8.1%, Nikkei -3.9%, Strait of Hormuz effectively closed
The war's economic shockwave intensified on Day 5 as Asian markets entered freefall. Seoul's Kospi plunged 8.1% before circuit breakers halted trading — a cumulative loss of 15.3% over two days approaching 2008 financial crisis levels. Tokyo's Nikkei fell 3.9%, extending multi-day losses. Oil prices continued climbing with the Strait of Hormuz effectively closed — CENTCOM confirmed 'not a single Iranian ship underway' in Gulf waters. Saudi Arabia's Ras Tanura refinery was hit for the second time. Qatar's LNG production remained halted with airspace closed. Trump attempted to calm markets by offering US government insurance for commercial shipping and Navy escort through Hormuz, but the damage to energy supply chains was accelerating. The economic war was becoming as significant as the military one.
Key facts
- •Kospi -8.1% (trading halted); cumulative -15.3% in 2 days
- •Nikkei -3.9%; Hong Kong, Australia also down sharply
- •Zero Iranian ships operational in Gulf (CENTCOM confirmed)
- •Qatar LNG production halted; airspace closed
- •Ras Tanura refinery struck for second time
- •Trump offers shipping insurance and Navy escorts
Timeline
Asian markets open sharply lower — Nikkei down 3.9%
Kospi circuit breakers halt trading at -8.1%
CENTCOM: zero Iranian ships operational in Gulf
Ras Tanura refinery hit by projectile for second time
Trump offers shipping insurance and Navy escorts