Debris of a NATO air defence system that intercepted a missile launched from Iran is seen in Dortyol, in southern Hatay province, Turkey, March 4, 2026 in this screengrab from video.
Ihlas News Agency | Via Reuters
Asia-Pacific markets traded lower Monday, as investors weigh a U.S. naval blockade on Iran’s ports after talks between Washington and Tehran failed to produce an agreement to end the conflict in the Middle East.
The breakdown of negotiations over the weekend in Islamabad reignited worries that the U.S.-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
Crude oil prices surged on Sunday after the talks ended without an agreement and the U.S. moved toward a blockade of Iranian port traffic. The West Texas Intermediate jumped 8.54% to $104.82 per barrel as of 11:45 p.m. ET. Brent crude gained 7.27% to $102.51 per barrel.
U.S. President Donald Trump has reportedly weighed resuming airstrikes on Iran, according to the Wall Street Journal. Trump last week agreed to a two-week ceasefire on Tuesday in exchange for Tehran allowing ships to pass through the strait. He had previously threatened to bomb every bridge and power plant in Iran.
India’s Nifty 50 was the worst-performing major Asian index, declining nearly 2%.
Japan’s Nikkei 225 fell 1.09%, while the Topix declined 0.67%. South Korea’s Kospi declined 1.26%, while the small-cap Kosdaq rose 0.26% in choppy trade. In Australia, the S&P/ASX 200 was 0.53% lower.
Mainland China’s CSI300 index inched 0.12% lower, while Hong Kong’s Hang Seng index extended early losses and was 1.22% lower.
Overnight on Wall Street, Dow Jones Industrial Average futures dropped by 517 points, or 1.1%. S&P 500 futures lost 1.1% and Nasdaq 100 futures shed 1.2%.
— CNBC’s Sarah Min and Spencer Kimball contributed to this report.
