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Asia faces oil shock as US-Iran war chokes Strait of Hormuz

Oil prices surged by the most in four years on Monday as the killing of Iranian supreme leader Ayatollah Ali Khamenei amid a widening conflict between the United States, Israel and Iran brought tanker traffic through the Strait of Hormuz to a near standstill. Freight costs climbed sharply alongside crude, as traders swiftly priced in the war, which analysts say will have far-reaching consequences for Asia’s heavily import-dependent economies. Benchmark Brent crude jumped 13 per cent to a high...

Mar 02, 2026 &03030202202631; 06:03 UTC www.scmp.com Trending 5/5

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Negative for markets

Sentiment score: -70/100

High impact Immediate effect (hours)

WHAT THIS MEANS

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AI CONFIDENCE

75% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↑

Oil (WTI Crude)

CL=FCommodity

Expected to rise

Supply disruption from Strait of Hormuz closure due to US-Iran war.

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US Dollar / Yen

USDJPYCurrency

High volatility expected

Higher oil costs impacting Japan's trade balance and currency stability.

↓

S&P 500

^GSPCIndex

Expected to decline

Increased geopolitical risk and higher energy prices threatening corporate earnings and economic growth.

PRICE HISTORY

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⚡ SUGGESTED ACTION

Hedge against oil price volatility with options on crude oil futures; reduce exposure to sectors vulnerable to high energy costs.

KEY SIGNALS

Oil price surgeFreight cost increaseGeopolitical tension escalationSupply chain disruption

SECTORS INVOLVED

EnergyTransportationConsumer Goods

Analysis generated on Mar 02, 2026 at 06:06 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by SCMP Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Asia faces oil shock as US-Iran war chokes Strait of Hormuz

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