Asian Markets Fall as Hormuz Crisis Deepens; Oil Surges Above $110

Asian Markets Slide as Hormuz Crisis Deepens; Oil Jumps Past $110
Ali Imran Chattha
Nazrana Times Lahore/KARACHI 

Asian stock markets tumbled on Monday as the prolonged closure of the Strait of Hormuz pushed oil prices firmly above $110 per barrel, raising fresh alarms for energy-dependent economies including Pakistan.
The crisis, now in its third month, has cut nearly all shipping traffic through the world's most vital oil chokepoint. Investors fled riskier assets, sending regional benchmarks into the red.
Market Snapshot
Index Change Close
Nikkei 225 (Japan) 1.65% 58,742

KOSPI (South Korea) 2.1% 2,678
Hang Seng (Hong Kong) 0.95% 25,847
Shanghai Composite –0.72% 4,085
S&P/ASX 200 (Australia) 0.85% 
Nifty 50 (India) 0.55% 23,945
The broader MSCI Asia Pacific index also reversed earlier gains.
Oil Price Surge
Benchmark Price Daily Change
Brent Crude (June) $110.55 +2.1%
WTI Crude (June) $98.17 +1.9%
Prices have now risen for seven straight sessions.
Pakistan at Risk
For Pakistan, the crisis is arriving at a perilous moment. The country relies heavily on imported oil and LNG much of which would normally pass through the Strait of Hormuz. With the strait effectively blocked, analysts warn of:
· Higher fuel prices at the pump
· Rising power tariffs as generation costs spike
· Increased imported inflation, squeezing household budgets
· Pressure on the rupee and dwindling foreign reserves
"This is not just a global oil shock it is a direct supply shock for Pakistan," said an energy economist in Karachi. "Even if alternative routes are used, shipping costs and insurance premiums have exploded."
What Is Happening in the Strait?
The strait normally carries about 25% of all seaborne oil trade, with 125–140 vessels passing daily. Since late February, Iranian mine-laying and restrictions, combined with a U.S. naval blockade of Iranian ports, have reduced traffic to near zero. A brief April ceasefire collapsed quickly.
Sectors Under Pressure
Refineries across Asia face feedstock shortages. Natural gas supplies through the strait have also been severely cut, raising costs for power generation and industry. Transport, petrochemicals and heavy manufacturing led the declines, while utilities and food companies offered some safety.
What to Watch
· Daily vessel transit numbers through the strait
· Any progress in U.S._Iran negotiations
· Possible releases from strategic petroleum reserves
· Increased use of Saudi Red Sea ports as alternate routes
European and U.S. markets are expected to open cautiously, with eyes on energy, defense and transport stocks.
Bottom Line
The situation remains highly volatile. For Pakistan, every day of blocked shipping adds to the burden on import bills, public debt, and ordinary citizens facing rising costs. Nazrana Times will continue to track how this crisis affects your wallet and the national economy.