Tokyo, Mar 23 (AP) Global shares dipped Monday across the board, as oil prices continued to climb after US President Donald Trump's latest comments dashed hopes for an early end to the war in Iran.
France's CAC 40 lost 1.5 per cent in early trading to 7,548.83, while Germany's DAX dove 2 per cent to 21,944.26. Britain's FTSE 100 fell 1.7 per cent to 9,754.80.
The US shares were set to drift lower with Dow futures down 0.5 per cent at 45,659.00. S&P 500 futures fell 0.7 per cent to 6,515.25.
In Asia, Japan's benchmark Nikkei 225 dropped 3.5 per cent to finish at 51,515.49. In Taiwan, the Taiex shed 2.5 per cent to 32,722.50. Australia's S&P/ASX 200 fell 0.7 per cent to 8,365.90. South Korea's Kospi dove 6.5 per cent to 5,405.75. Hong Kong's Hang Seng slipped 3.5 per cent to 24,382.47, while the Shanghai Composite declined 3.6 per cent to 3,813.28.
Trump over the weekend warned the US will “obliterate” Iran's power plants if it doesn't fully open the Strait of Hormuz within 48 hours, prompting Tehran to say it would respond to any such strike with attacks on the US and Israeli energy and infrastructure assets in the region.
"Trump's ultimatum and Iran's retaliatory warnings point to a widening conflict that keeps energy disruption and market volatility elevated with no clear off-ramp in sight," said Ng Jing Wen, an analyst at Mizuho Bank in Singapore.
Higher oil prices, which also shook stock markets on Friday, dashed hopes for a possible upcoming cut to interest rates by the Federal Reserve, analysts said. Before the war, traders were betting that the Fed would cut rates at least twice this year. Central banks in Europe, Japan and the United Kingdom also recently held their interest rates steady.
But analysts observed that the markets were starting to react less to each of Trump's remarks, perhaps deciding the narrative for markets was being set elsewhere, not Washington, such as what Iran might do but how global economic growth could be affected by soaring energy prices. Some Asian nations, like Japan, are vulnerable to higher energy prices.
In energy trading, benchmark US crude added USD 1.62 to USD 99.85 a barrel. Brent crude, the international standard, gained USD 1.42 to USD 113.61 a barrel. The price of Brent crude has zigzagged lately from about USD 70 per barrel before the war began to as high as USD 119.50.
In currency trading, the US dollar rose to 159.53 Japanese yen from 159.22 yen. The euro cost USD 1.1526, down from USD 1.1571. (AP) AKY