- Asian markets opened lower on July 14 amid US-Iran tensions over the Strait of Hormuz
- Japan's Nikkei 225 fell 1.17%, Topix declined 0.51%, South Korea's Kospi dropped 2.01%
- Australia's S&P/ASX 200 opened 0.29% lower; Hong Kong's Hang Seng futures were down slightly
Asian Markets Today | July 14: Asia-Pacific markets opened lower on Tuesday, Juy 14, after US President Donald Trump proposed to charge a fee from ships passing through the Strait of Hormuz and reinstated a blockade of Iranian ports. Japan's benchmark Nikkei 225 fell 1.17%, while the Topix declined 0.51%. South Korea's Kospi was down 2.01%, while the small-cap Kosdaq lost 1.8%. Australia's benchmark S&P/ASX 200 traded 0.29% lower at the open. Futures for Hong Kong's Hang Seng index stood at 24,158, lower than its last close of 24,213.72. Kospi and Nikkei pared some losses after the opening bell.
Donald Trump said he would reinstate a blockade on Iranian shipping through the key Strait of Hormuz. "We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran's ships or customers from entering or leaving," Trump said in a post on Truth Social. The US has rejected Iran's own plans to charge tolls to ships passing through the strait, which maritime experts, regulators and even top Trump administration officials have said are illegal under international law.
Trump's announcement sent oil prices surging and stocks sliding. The S&P 500 shed 0.8% on the day, while the Nasdaq Composite dropped 1.6%. The Dow pulled back by more than 100 points, or around 0.3%. The performance of the US stock market faces a major test this week, with a fresh slate of macroeconomic data ahead, including the consumer price index-led inflation on Tuesday, then the producer price index and the US consumer sentiment.
Crude oil prices settled up more than 9% on Monday at a one-month high after news that a United States' naval blockade due to begin on Tuesday will cover Iran's entire coastline, ports and oil terminals, as well as all vessels regardless of flag, reigniting concerns over energy shipments through the Strait of Hormuz. Brent crude futures settled up $7.29, or 9.59%, to $83.30, while the US West Texas Intermediate crude settled up $6.73, or 9.42%, to $78.14 per barrel.
Brent futures posted their biggest single-day dollar gain since April 2, and highest settlement since June 12. US crude futures, meanwhile, made their largest daily gain since April 29 to settle at their highest since June 15. The latest measures by the US and Iranian authorities have renewed concerns about crude supplies from the Persian Gulf, with investors assessing the impact of tighter restrictions on one of the world's most important oil shipping routes, directly impacting imports.
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