Asian Shares Mostly Lower as Iran War Impacts Energy Supplies

Oil prices surge higher as investors eye risks to regional energy supply due to the ongoing conflict in Iran.

Mar. 3, 2026 at 3:23am

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Asian shares mostly declined on Tuesday as investors focused on the impact of the Iran war on energy supplies in the region. Benchmark U.S. crude oil rose 77 cents to $72.00 a barrel, while Brent crude added $1.10 to $78.84 a barrel, reflecting concerns about potential disruptions to global crude flows. Shares in South Korea, Japan, Australia, Hong Kong, and China all fell, with energy and airline stocks among the biggest losers.

Why it matters

The Iran war has raised concerns about access to the Strait of Hormuz, a critical global chokepoint for oil and natural gas shipments. As a resource-poor country, Japan could be especially vulnerable to supply disruptions, though analysts say the country has a sizable energy stockpile that should provide some cushion in the short term. The surge in oil prices threatens to further strain the already high fuel costs for airlines, which were among the biggest stock decliners on Monday.

The details

Shares in South Korea's benchmark index sank 4.8% as markets reopened after a holiday, while Japan's Nikkei 225 fell 2.1%. Australia's S&P/ASX 200 lost 1.2%, Hong Kong's Hang Seng shed 0.1%, and the Shanghai Composite index declined 0.3%. Energy stocks were among the biggest losers, with Eneos Corp. in Japan down nearly 6% and Idemitsu Kosan down nearly 4%. Airline stocks also plunged, with ANA down 2.4%, Japan Airlines falling 5.2%, Korean Air declining 8.9%, and Qantas Airways losing 2.9%.

  • On Monday, oil prices jumped but then fell back, although still at higher levels than before due to worries about the Iran war.

The players

Strait of Hormuz

A critical global chokepoint for oil and natural gas shipments, the closure of which due to the Iran war has raised concerns about energy supply disruptions in the region.

Japan

A resource-poor country that could be especially vulnerable to supply disruptions from the Iran war, though analysts say the country has a sizable energy stockpile that should provide some cushion in the short term.

Eneos Corp.

A Japanese energy company whose stock plunged nearly 6% due to the impact of the Iran war on energy supplies.

Idemitsu Kosan

A Japanese energy company whose stock fell nearly 4% due to the impact of the Iran war on energy supplies.

ANA

A Japanese airline whose stock declined 2.4% due to the threat of higher fuel costs from the surge in oil prices.

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What they’re saying

“Since 2000, there have been 22 one-day oil price spikes of more than 10 percent. In other words, energy shocks do not automatically derail equities unless they are severe and sustained. The market is well aware of that playbook.”

— Stephen Innes, Managing partner at SPI Asset Management

The takeaway

The Iran war's impact on energy supplies in Asia has led to a broad decline in regional stock markets, with energy and airline stocks among the hardest hit. While the market reaction has been relatively muted so far, a sustained spike in oil prices above $100 per barrel could pose a more significant threat to equities globally.