Global Stocks Slide, Oil Jumps After Trump’s 48-Hour Hormuz Ultimatum

COLOMBO (News 1st); Stock markets across the Asia-Pacific region fell sharply on Monday amid escalating geopolitical tensions after US President Donald Trump issued an ultimatum warning Iran to reopen the Strait of Hormuz or face the annihilation of its energy infrastructure.

Japan’s benchmark Nikkei 225 plunged 4 percent in early trading, while South Korea’s KOSPI dropped even more steeply, sliding 4.5 percent.

In Hong Kong, the Hang Seng Index tumbled about 2 percent, reflecting mounting investor anxiety over the risk of a wider energy shock. Australia’s ASX 200 fell roughly 1.6 percent, and New Zealand’s NZX 50 dipped about 1.3 percent.

Market unease also spilled into the United States, where Wall Street futures traded outside regular hours showed moderate losses. Futures tied to the S&P 500 and the Nasdaq Composite were both down about 0.5 percent, pointing to a weaker open if sentiment fails to stabilise. Oil prices remained volatile as fears grew of further disruption to global energy supplies.

Futures for Brent crude, the international benchmark, rose more than 1.5 percent to briefly top $114 a barrel before easing back to around $112 as of 02:00 GMT. Energy markets have been on edge since the Strait of Hormuz, a critical global chokepoint, became the focal point of intensifying conflict.

On Saturday, Trump threatened to “obliterate” Iran’s power plants within 48 hours if Tehran does not end what Washington describes as an effective blockade of the strait.

Around one-fifth of the world’s oil and natural gas exports normally pass through the narrow waterway.

Iran, meanwhile, has pledged to completely close the strait and to launch retaliatory attacks on energy and water infrastructure across the region if Trump follows through on his warning. Despite the threat, a small number of vessels flagged by China, India and Pakistan are still transiting the waterway.

Based on the timing of Trump’s post on Truth Social, the deadline for his ultimatum is set to expire at 23:44 GMT on Monday, heightening global concern over what comes next.

The warning has added to fears of a cascading global energy crisis as the US and Israel’s war on Iran approaches the one-month mark with no clear end in sight. The conflict began with US‑Israeli strikes on February 28, and oil prices have already surged more than 50 percent since the start of the war.

Analysts have cautioned that energy prices could rise significantly further if the Strait of Hormuz remains effectively closed. Some observers have warned that oil could climb to $150 or even $200 a barrel in a worst-case scenario.

Diplomatic efforts have continued alongside military pressure. Trump held a phone call on Sunday with UK Prime Minister Keir Starmer to discuss the situation in the Middle East, including the effective closure of the strait. According to a statement from Starmer’s office, the two leaders agreed that unblocking the Strait of Hormuz is “essential to ensure stability in the global energy market.”

However, Trump has sent mixed signals about the objectives and duration of the war. Just hours before issuing his ultimatum on Saturday, he said his administration was “very close to meeting our objectives as we consider winding down” military operations against Iran.

In contrast, Israeli military spokesperson Lieutenant Colonel Nadav Shoshani told reporters last week that officials had detailed plans for at least three more weeks of fighting, underscoring the uncertainty facing global markets and energy consumers alike.