Asian markets plummets as investors shift to safe-haven fleet amid US-Iran war

• Asian equity markets have fallen like a house of cards amid the brutal war between the US and Iran.
• The oil price surges to its over seven-month high amid heightened Middle East tensions.
• US President Trump is open for talks with Iran’s interim leader Ayatollah Alireza Arafi.

Asian stock markets plunge sharply at the start of the week. Equity markets across the Asia are facing the heat of brutal war between the United States (US) and Iran, which started over the weekend, in which many Iranian top leaders, including Tehran’s top leader Ayatollah Ali Khamenei, have been killed.

As of writing, Nikkei 225 is down 1.5% to near 58,000, Hang Seng dives 2.5% near 26,000, Shanghai drops 0.13% to near 4,157. Meanwhile, Indian bourses are expected to open negative. Gift Nifty futures indicate that Nifty50 will open 125 points lower to near 25,160.

Trump told Fox News that their military has killed 48 Iranian leaders in the first two days of bombing, and claimed in a post on Truth.Social that the naval headquarters destroyed, and nine Iranian warships had been sunk.

In retaliation, Tehran has struck several Middle East countries, and various US military basis across the region.

The brutal war between the nations have increased the safe-haven demand of precious metals, and a significant upside move in the oil price. WTI futures on NYMEX are up 4% to near $70, as of writing, the highest level seen in over seven months.

Higher oil price is an unfavorable situation for currencies and stock markets in Aisa, given that that rely heavily on oil imports to meet their energy needs.

Meanwhile, latest comments from US President Donald Trump have shown that he is open for talks with Tehran’s new leadership, which has been passed to Ayatollah Alireza Arafi.