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The MSCI Asia Pacific Index was down 1.2% with Japan's Nikkei declining up to 3.9%, bringing its losses in March to 13% . South Korea's Kospi declined 4.5%, marking a 12% decline for March. Australian equities were down as much as 2% and heading for a correction.
By CNBCTV18.com March 23, 2026, 6:48:15 AM IST (Updated)
4 Min Read
Share markets started off to a volatile start on Monday, March 23, as the Iran-Israel-US war entered its fourth week.
Asian shares tumbled, while US equity-index futures and crude oil were getting whipsawed. Treasures fell as well.
The MSCI Asia Pacific Index was down 1.2% with Japan's Nikkei declining up to 3.9%, bringing its losses in March to 13% . South Korea's Kospi declined 4.5%, marking a 12% decline for March. Australian equities were down as much as 2% and heading for a correction.
Crude oil swung sharply, jumping 1.9% initially before reversing to fall nearly 1.8%. The commodity traded at around $112 a barrel. S&P 500 futures were similarly choppy before settling down 0.4%. Australia’s 10-year government bond extended losses, with yields on the benchmark note rising 13 basis points on Monday. A Bloomberg gauge of the dollar was little changed.
Tensions in the Middle East showed no signs of easing, with President Donald Trump issuing a 48-hour ultimatum to Tehran to reopen the Strait of Hormuz or face strikes on its power plants, a deadline that expires Monday evening in New York. Iran responded that any such attack would prompt it to shut the waterway indefinitely and target US and Israeli energy infrastructure across the region.
Share markets started off to a volatile start on Monday, March 23, as the Iran-Israel-US war entered its fourth week.
Asian shares tumbled, while US equity-index futures and crude oil were getting whipsawed. Treasures fell as well.
The MSCI Asia Pacific Index was down 1.2% with Japan's Nikkei declining up to 3.9%, bringing its losses in March to 13% . South Korea's Kospi declined 4.5%, marking a 12% decline for March. Australian equities were down as much as 2% and heading for a correction.
Crude oil swung sharply, jumping 1.9% initially before reversing to fall nearly 1.8%. The commodity traded at around $112 a barrel. S&P 500 futures were similarly choppy before settling down 0.4%. Australia’s 10-year government bond extended losses, with yields on the benchmark note rising 13 basis points on Monday. A Bloomberg gauge of the dollar was little changed.
Tensions in the Middle East showed no signs of easing, with President Donald Trump issuing a 48-hour ultimatum to Tehran to reopen the Strait of Hormuz or face strikes on its power plants, a deadline that expires Monday evening in New York. Iran responded that any such attack would prompt it to shut the waterway indefinitely and target US and Israeli energy infrastructure across the region.
With inputs from Bloomberg
Global markets have been ravaged by the US-Iran war, which has seen stocks and bonds sell off in tandem last week. US yields are perched at their highest in months after a third straight week of bond losses. Short-term notes led last week’s rout, with two-year Treasury yields climbing 18 basis points to 3.90%, following selloffs in European bond markets as investors positioned for higher rates.
The selloff in the US accelerated on Friday as traders started anticipating that the Federal Reserve may shift to hiking interest rates this year as oil prices threaten to deliver a fresh inflation shock. Markets are bracing for similar moves from central banks in Japan, Europe and the UK, even as the war also dampens the outlook for economic growth globally.
The standoff over Hormuz — through which roughly a fifth of the world’s oil and liquefied natural gas normally flows — has deepened a supply crisis already rippling into gasoline prices, fertilizer costs and food production. Traffic through the strait has effectively ground to a halt since the conflict began at the end of February.
After markets closed on Friday, Trump indicated he was looking for a way to pull back from the war by saying on social media that he was considering winding down military efforts in Iran, claiming the US was “very close” to meeting its objectives. But his later threats to bomb power plants — and Iran’s vow to retaliate — showed little progress toward a ceasefire.
The twin risks of rising inflation and potentially weaker growth drove the S&P 500 down by 1.5% on Friday, capping its fourth straight weekly loss, the longest losing streak in a year. The benchmark 10-year Treasury yield surged by 13 basis points to 4.38%, the highest since late July.
With inputs from Bloomberg
First Published:
Mar 23, 2026 6:46 AM
IST
