Asia-Pacific Markets Tumble as Investors Brace for a Prolonged War in Middle East
13 March 2026
Today in Brief
Asia-Pacific markets tumbled as investors braced for a prolonged war in the Middle East.
Oil surged, stocks hit new 2026 lows, and Iran's new supreme leader vowed to keep the Strait of Hormuz closed.
Asia Markets
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Asia-Pacific markets tumble as investors brace for a prolonged war in Middle East
Asia-Pacific markets opened lower Friday as oil prices soared on renewed fears that a prolonged conflict in the Middle East could further crimp energy supplies, stoking fears of a global economic downturn. Iran's new Supreme Leader Mojtaba Khamenei said in a late Thursday speech that the Strait of Hormuz, a vital artery for global oil trade, should remain shut and that Tehran could open other fronts in the war if the conflict persists. Commander of the Iranian Revolutionary Guard Corps Navy, Alireza Tangsiri, also doubled down on the threat in a social media post, warning of "the harshest blows to the aggressor enemy." Bettors on prediction market Kalshi raised their wagers that the U.S. economy may enter a recession this year, with the likelihood climbing to 32% — highest level this year.
U.S. Markets
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Dow tumbles more than 700 points as oil jumps, closing at new 2026 low under 47,000
Stocks were under pressure on Thursday as oil prices added to their surge on supply disruption worries while the Iran war continued. The Dow Jones Industrial Average fell 739.42 points, or 1.56%, closing at 46,677.85. The S&P 500 lost 1.52% and settled at 6,672.62, while the Nasdaq Composite shed 1.78% to end at 22,311.98. All three indexes posted closing lows for 2026, and the 30-stock Dow ended the session below the 47,000 threshold for the first time this year. Crude prices continued to climb after Iran's new supreme leader, Mojtaba Khamenei, who was appointed on March 9, said that the Strait of Hormuz should remain closed as a "tool to pressure the enemy."
Commodities
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Gold prices rose to around $5,110 per ounce on Friday, following a two-day drop
Gold prices rose to around $5,110 per ounce on Friday, following a two-day drop, as markets weighed the geopolitical risk premium against the inflationary impact of surging oil prices. US President Donald Trump and Iran's new supreme leader Mojtaba Khamenei struck defiant tones on the 13th day of the war. Trump said preventing Iran from acquiring nuclear weapons and threatening the Middle East outweighs concerns over oil prices, while Khamenei vowed to keep the Strait of Hormuz effectively closed and warned Tehran could open additional fronts if US and Israeli attacks persist. This has pushed energy prices higher, fueling further inflation concerns and dampening expectations that the Federal Reserve will cut interest rates.
Energy
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WTI crude futures traded around $95 per barrel on Friday after a sharp two-day rally
WTI crude futures traded around $95 per barrel on Friday after a sharp two-day rally, as Iran's new Supreme Leader Mojtaba Khamenei pledged to keep the Strait of Hormuz effectively shut. He also warned that Iran may open additional fronts in the conflict if the US and Israel continue their attacks, while US President Donald Trump said preventing Iran from obtaining nuclear weapons and posing a threat to the Middle East is more important to him than the cost of oil. Tankers have been unable to load cargo from the Gulf since the conflict began earlier this month, effectively removing 20% of global trade and forcing GCC members to cut production by 10 million barrels per day as storage capacity filled up.
Economy
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U.S. launches fresh Section 301 probes into 60 economies over forced-labor trade practices
The U.S. on Thursday launched new trade investigations into 60 economies to determine whether they failed to curb imports of goods made with forced labour, a day after it initiated unfair trade practices probe into 16 trading partners. The new investigations, conducted under Section 301(b) of the Trade Act of 1974, include China, the European Union, India and Mexico, according to a statement from the United States Trade Representative. "Despite the international consensus against forced labour, governments have failed to impose and effectively enforce measures banning goods produced with forced labour from entering their markets," U.S. Trade Representative Jamieson Greer said.
Energy Markets
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U.S. allows temporary purchases of Russian oil already at sea to stabilize energy markets
The U.S. on Thursday temporarily authorized the purchase of Russian oil stranded at sea to stabilize energy markets. U.S. Treasury Secretary Scott Bessent said in a post on X that this was a "narrowly tailored, short-term measure" that applies only to oil already in transit. CNBC understands that there are roughly 124 million barrels of Russia-origin oil at sea across 30 locations globally as of March 12, enough for about five to six days of supply. "The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term," Bessent said. Oil prices have swung sharply since the start of the Iran war, with oil nearing hitting nearly $120 per barrel on Monday. Bessent noted the temporary measure will not provide "significant financial benefit to the Russian government."
Geopolitics
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Strait of Hormuz must remain closed as 'tool to pressure enemy,' Iran's new supreme leader says
Iran's new supreme leader, Mojtaba Khamenei, said Thursday that the closure of the Strait of Hormuz maritime passage should be continued as a "tool to pressure the enemy," in his first public statement since being appointed. Khamenei also said all U.S. military bases in the Middle East should close immediately and "those bases will be attacked," in televised comments translated by Reuters. Oil prices extended gains following the statement, read out by a state TV broadcaster. The shipping of oil through the Strait of Hormuz has effectively stopped since the war began, causing global oil prices to soar. Iran warned on Wednesday that the price per barrel could climb to $200. It's Khamenei's first public comments since being appointed as Iran's supreme leader on March 9 after the assassination of his father, Ayatollah Ali Khamenei, in U.S.-Israeli air strikes which began in late February.
Economy
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India's consumer inflation rises to 3.21% in February as oil risks loom
India's consumer inflation rose for the fourth straight month to 3.21% in February, up from 2.75% in the previous month. The headline inflation number was in line with economists' expectations for a 3.1% rise in the consumer price index, according to a Reuters poll. Food inflation rose 3.47% year-on-year in February, also up from a 2.13% rise in January, India's Ministry of Statistics and Programme Implementation said in a release Thursday. This is the second consumer price index reading under a revised data series, with the base year changed to 2024 from 2012 to reflect changes in consumption patterns. The base year was changed because "significant structural changes have occurred in consumption behaviour, income levels, urbanisation, expansion of the services sector, and digitalization," the government said in a statement in February.
Technology
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China's ByteDance gets access to top Nvidia AI chips, reports
TikTok's Chinese parent ByteDance is assembling computing power with high-end Nvidia chips outside China, the Wall Street Journal reported on Thursday. ByteDance is working with Southeast Asian firm Aolani Cloud to deploy about 500 Nvidia Blackwell computing systems in Malaysia, totalling roughly 36,000 B200 chips, the report said, citing people familiar with the matter. Aolani is buying the servers from Aivres, a company that assembles the processors using Nvidia chips, the WSJ report said. Nvidia is blocked by the U.S. from selling its advanced artificial intelligence chips to China. But Chinese companies have attempted to bypass these restrictions by setting up data centres outside the country. Reports earlier this year showed Bytedance also using B200 Nvidia chips in a center in Indonesia.
Corporate
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Adobe's longtime CEO to exit role amid AI disruption, shares fall
Adobe's longtime CEO Shantanu Narayen will leave his role once a successor is appointed, the design software maker said on Thursday, sending its shares down over 7% in extended trading on renewed worries around its strategy as it grapples with AI disruption. Narayen's exit from the role comes after he served as the head of Adobe for 18 years, during which he helped the company's flagship software such as Photoshop, Illustrator, Premiere Pro and InDesign become household products for creatives across the world. Narayen will stay on as chair of the board to support the next CEO, the company said. But the announcement of him leaving the helm puts the company in a precarious position as it comes at a time when Adobe is doubling down on AI, striking partnerships and exploring acquisitions to extend its industry lead.
Corporate
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Ulta Beauty wary of 'global conflicts' pressure on consumer as profit target lags Street
Ulta Beauty forecast annual profit below analysts' estimates as higher costs drag margins, and sounded some caution on the potential impact from "global conflicts", sending its shares down 8% in extended trading on Thursday. To draw younger and more affluent shoppers, Ulta has leaned on celebrity-owned and premium labels such as Beyonce's Cecred haircare line and Rihanna's Fenty Skin Body, while it ran holiday campaigns featuring Khloe Kardashian and Paris Hilton. Ulta also acquired British high-street chain Space NK last year to enter the UK, stepping up its international expansion and tapping into the growing skincare market. "We are optimistic about the opportunities ahead, while remaining mindful and cautious as we navigate in an environment with ongoing global uncertainty and potential economic volatility," said CEO Kecia Steelman.
Technology
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SentinelOne's quarterly profit forecast falls short of estimates amid stiff competition
Cybersecurity firm SentinelOne forecast quarterly profit below Wall Street estimates on Thursday, signaling a cautious stance amid intense competition from larger rivals and a finance leadership transition. Shares of the Mountain View, California-based company were down over 2% after the bell. The company faces competition from larger rivals such as CrowdStrike and Palo Alto Networks, as well as from Microsoft, which is bundling security features into its enterprise software. The cybersecurity market has also been rattled by concerns over the rise of artificial intelligence tools, which could commoditize certain security functions. The company's biggest product is an AI-powered cybersecurity platform called Singularity, which aims to autonomously prevent, detect and respond to cyberattacks across devices, cloud workloads and data centers.
