# South Korea’s stock market plunges on Iran: Asian shares tumble as oil rises

- Link: https://www.thailand-business-news.com/finance/293025-south-koreas-stock-market-plunges-on-iran-asian-shares-tumble-as-oil-rises
- Published: 2026-03-07T06:00:00+07:00
- Author: Thai Video News

**Asia’s stock markets declined sharply, with South Korea experiencing a 12% plunge—
its worst since the pandemic—and Thailand facing its biggest sell-off. Concerns 
over an oil shock and escalating Iran tensions are fueling fears that these conflicts
could harm the region’s economies. South Korea’s currency also hit a 17-year low
amid these uncertainties.

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### Rising Oil Prices and Stock Market Declines in Asia

Oil prices are steadily increasing as Asian stock markets continue to decline, with
South Korea experiencing a sharper plunge than during the 2008 global financial 
crisis. This sharp decline is largely due to the region’s heavy dependence on Middle
Eastern crude oil imports, making the economies vulnerable to ongoing conflicts 
in the Middle East. If the war persists, South Korea’s economy could face severe
deterioration, already evidenced by long queues at fuel stations.

### Economic Risks and Government Responses

The international situation has caused concerns over fuel shortages and rising costs,
especially as Asian countries do not produce sufficient oil domestically. The rising
dollar exchange rate adds to the worry, leading to increased fuel prices and economic
strain. Governments are trying to reassure their populations, with some nations 
stockpiling oil reserves to mitigate short-term disruptions. South Korea and Japan
are actively working on diversification strategies to reduce dependency on Middle
Eastern oil.

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### Global Implications and Future Outlook

A disruption in the supply chain, particularly if the Strait of Hummer remains closed,
could significantly impact global inflation and economic growth. Alternative oil
supplies will likely be more expensive due to soaring shipping costs. China has 
been pressing Iran to reopen key maritime routes, which could ease supply pressures.
However, a prolonged conflict may deepen economic pain in Asia, underscoring uncertainties
ahead as global tensions and energy prices remain volatile.

[source](https://www.youtube.com/watch?v=3pD0FwBN8dg)