Asian Markets Slide As Iran Closes Strait Of Hormuz, Brent Crude Jumps 2% To $97 Per Barrel

Mumbai: Equity indices in Asia were under pressure on Thursday after Iran said the US violated the recently announced two-week ceasefire. Iran closed the Strait of Hormuz less than 24 hours after agreeing to a ceasefire with the US. Following this, the June contract of Brent Crude oil futures rose by 2% to nearly $97 per barrel.

South Korea's benchmark index Kospi declined the most among its peer indices, after gaining for the previous four straight sessions. Japan's benchmark index Nikkei 225, and the broader market Topix, fell 0-5-0.8%. "The deep historical distrust we hold toward the United States stems from its repeated violations of all forms of commitments — a pattern that has regrettably been repeated once again," Iran's Parliamentary Speaker Mohammad Bagher Ghalibaf said in a post on social media platform X.

He said three elements of Iran's 10-point truce proposal were violated. This included Israel's ongoing strikes in Lebanon, a drone entering Iranian airspace, and what he described as the denial of Tehran's right to enrich uranium. Propane prices may go up for Japanese households in May as importing liquefied petroleum gas from West Asia is set to get costlier for the country in April, the Nikkei Asia reported.

This comes as energy prices remain elevated due to supply disruptions stemming from the war in West Asia. Cracks started appearing in the ceasefire deal between the US, Iran and Israel. Israel carried out one of its largest strikes against Hezbollah in Lebanon Wednesday, which killed at least 112 people and injured over 837. Israel said it had halted attacks on Iran, but the ceasefire deal did not include Lebanon. 

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