Asia-Pacific Markets Fall as Oil Prices Stay Elevated Amid Escalating U.S.-Iran Tensions
16 March 2026
Today in Brief
Asia-Pacific markets fell as oil prices stayed elevated amid escalating U.S.-Iran tensions.
Strikes on Kharg Island, a record low rupee, and ceasefire rejections deepened global market uncertainty.
Asia Markets
Story 01
Asia-Pacific markets fall as oil prices stay elevated amid escalating U.S.-Iran tensions
Asia-Pacific markets fell Monday as investors assess elevated oil prices and the latest developments in the escalating U.S.-Iran conflict. U.S. crude prices topped $100 per barrel as the Trump administration weighs military strikes on Tehran's Kharg Island, a strategically vital hub often referred to as Iran's "oil lifeline." U.S. crude oil was trading flat at $98.7 per barrel by 8:10 p.m. ET. Brent prices, the international benchmark, were up 0.48% to $103.7 per barrel. President Donald Trump on Friday ordered strikes against Iranian military assets on Kharg Island and warned of further attacks on crude facilities located there. Mike Waltz, the U.S. ambassador to the United Nations, repeated the warning Sunday.
U.S. Markets
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S&P 500 falls to new low for year on Iran oil crisis, posts third-straight losing week
The S&P 500 fell on Friday, while oil prices extended their gains as investors awaited further developments in the Iran war. The broad-based index shed 0.61%, putting it 5% below its recent high and closing at 6,632.19. The Nasdaq Composite declined 0.93% to end at 22,105.36. The Dow Jones Industrial Average shed 119.38 points, or 0.26%, and settled at 46,558.47. The S&P 500, which scored a new low for 2026 on Friday, posted a 1.6% loss this week and notched its first three-week losing streak in about a year. The 30-stock Dow slid about 2%, while the tech-heavy Nasdaq fell 1.3% week to date. The recent rally in oil prices continued on Friday. West Texas Intermediate crude futures settled up 3.11% at $98.71 per barrel. Brent futures settled higher by 2.67% at $103.14 a barrel. Brent had closed above $100 for the first time since August 2022 on Thursday.
Commodities
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Gold held near $5,000 per ounce on Monday after falling for two straight weeks
Gold held near $5,000 per ounce on Monday after falling for two straight weeks, as oil remained volatile after the US attacked Iran's main oil-export hub of Kharg Island over the weekend, heightening global supply risks. The strike prompted retaliatory attacks from Tehran on Israel and energy infrastructure across other Arab countries. The US-Israeli war on Iran has now entered its third week with no clear resolution in sight, rattling financial markets. Higher energy prices and mounting inflationary pressures have lowered expectations that the US Federal Reserve and other major central banks will cut interest rates, posing a headwind for non-yielding precious metals.
Energy
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WTI crude futures rose above $99 per barrel on Monday
WTI crude futures rose above $99 per barrel on Monday after earlier climbing as high as $102.40 a barrel to their highest level since July 2022, following US strikes on military sites on Kharg Island as the Middle East conflict entered its third week. US President Donald Trump also warned that Iran's energy infrastructure on the island, which handles roughly 90% of the country's oil exports, could be targeted if Tehran interferes with transit through the Strait of Hormuz. The narrow waterway linking the Persian Gulf with global markets has remained effectively shut since the conflict began, with Iran's new supreme leader pledging last week to keep the strait closed if hostilities continue.
Geopolitics
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Trump signals possible delay to Beijing summit as U.S. pressures China to help reopen Strait of Hormuz
U.S. President Donald Trump said his planned trip to China later this month could be delayed as Washington sought to pressure Beijing to help reopen the Strait of Hormuz, underscoring a renewed flashpoint in an already fragile bilateral relationship. In an interview with the Financial Times on Sunday, Trump said he expected China to help unblock the strait before he travels to Beijing for a summit with Chinese leader Xi Jinping, which had been scheduled for March 31 to April 2. Trump added that the two weeks to the meeting were a "long time" and that Washington wanted clarity before then. "We may delay," Trump told the FT, without elaborating on timing.
Economy
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Indian rupee hits record low as Iran war sparks oil supply shock
The Indian rupee hit a record low on Monday, extending its recent downturn against the dollar amid rising oil prices and fears of more supply disruptions stemming from the U.S.-Israel war on Iran. The rupee's USD/INR pair, which gauges the number of rupees needed to buy one dollar, rose as high as 92.711 rupees on Monday. Weakness in the rupee was driven chiefly by heightened concerns over India's oil and gas supplies, after Iran effectively blocked the Strait of Hormuz earlier this month. The waterway supplies roughly 20% of the world's oil consumption, and is also a key channel for Indian oil and gas imports. The country imports roughly 80% of its overall oil and gas consumption, leaving it heavily dependent on energy imports and vulnerable to any supply disruptions. Higher oil prices also mean that Indian importers have to pay more for oil imports-- a trend that weighs on the rupee.
Geopolitics
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Trump rejects efforts for Iran ceasefire talks; Tehran rules out truce
The Trump administration has rejected attempts by mediators to start ceasefire talks with Iran, while Tehran has also ruled out the possibility of a truce until U.S. and Israeli strikes stop, Reuters reported, citing sources familiar with the matter. Several Middle Eastern countries have been trying to open diplomatic channels between Washington and Tehran to halt the escalating conflict, but U.S. officials have so far declined to engage in discussions aimed at launching ceasefire negotiations, the sources said. The conflict began roughly two weeks ago after the United States and Israel launched major airstrikes on Iranian targets, triggering retaliation from Tehran across the region. The war has since disrupted shipping in the Strait of Hormuz, one of the world's most important oil chokepoints, pushing up energy prices and raising concerns about global supply.
Energy Markets
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India secures safe passage for LPG tankers through the shuttered Strait of Hormuz
Two liquefied petroleum gas (LPG) tankers have successfully navigated the Strait of Hormuz and are en route to India, signalling a potential breakthrough in the supply crisis caused by the ongoing conflict in the Persian Gulf. The transit of the vessels, which were granted safe passage following a reported deal between New Delhi and Tehran, provides a critical lifeline to an Indian economy grappling with acute shortages of cooking and industrial fuel. The tankers, identified as the Shivalik and Nanda Devi, were chartered by the state-run Indian Oil Corp. (NS: IOC) and are owned by Shipping Corp of India Ltd. (NS: SCI). According to sources familiar with the matter, the ships were allowed to traverse the waterway, which has been effectively shuttered for nearly a fortnight, under a sensitive diplomatic arrangement.
Corporate
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JD.com takes on Amazon in Europe as China's e-commerce titans expand globally
JD.com launched its long-anticipated European online shopping platform on Monday, as the Chinese e-commerce giant looks to challenge Amazon as well as domestic rivals that have already expanded internationally. Joybuy, JD.com's international online shopping brand, launches in six new markets, including the U.K. and Germany, with the company banking on fast deliveries and high-quality products to get an edge on rivals. While peers like AliExpress and Temu operate an asset-light model and ship goods directly from China, JD.com has its own local warehouses and logistics networks that enable it to minimize delivery times. The approach has been successful in China, where JD has developed an extensive logistics network for super-fast deliveries and established itself as a destination for domestic consumers to buy global brands such as Apple.
Technology
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Micron plans second chip facility at newly acquired Taiwan site
U.S. memory chipmaker Micron Technology said on Monday it plans to build a second manufacturing facility in Taiwan at the Tongluo site it recently acquired from Powerchip Semiconductor Manufacturing Corp. The new facility will help it expand supply of leading-edge DRAM products including high-bandwidth memory (HBM) to support surging AI demand, the company said. Micron also said it has completed the acquisition of PSMC's Tongluo P5 site and the new second facility would be of similar scale to the existing fab in Miaoli County. Construction is scheduled to begin by the end of fiscal 2026.
Technology
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Nvidia to focus on competition-beating AI advances at megaconference
When Jensen Huang strides onto the stage of a packed hockey arena to kick off Nvidia's annual developer conference on Monday, he is likely to reveal products and partnerships geared toward keeping the AI chipmaker atop a growing array of competitors. Taking over the heart of Silicon Valley for most of a week, Nvidia GTC, as the conference is known, has become CEO Huang's preferred event to show off Nvidia's AI advances in chips, data centers, its chip programming software CUDA, digital assistants known as AI agents, and physical AI such as robots. This year, the four-day event is even more crucial as investors will seek assurance that Nvidia's strategy of ploughing back its profits into the AI ecosystem is paying off.
Corporate
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Fertitta Entertainment in talks to buy Caesars for $6.5 billion
Fertitta Entertainment is negotiating to buy Caesars Entertainment for $32 per share, at an equity value of $6.5 billion, CNBC reported on Saturday, citing sources close to the situation. Fertitta's terms for Caesars include an enterprise value of $31.5 billion, given the gaming company's substantial debt, the report said. "As a matter of policy, we don't comment on rumors or market speculation," Caesars said in an emailed response to Reuters. Reuters could not immediately verify the report. Fertitta Entertainment did not immediately respond to Reuters' request for comment outside regular business hours. Deal talks are taking place within a 45-day exclusive window, this weekend at Fertitta's headquarters in Houston, CNBC added. The Wall Street Journal reported earlier this week that Fertitta Entertainment has been discussing paying around $34 a share for Caesars, giving it a value of roughly $7 billion. The casino operator also received an all-cash offer of around $33 a share from Icahn Enterprises, the publicly traded company that houses billionaire Carl Icahn's investments, the Journal said.
