The Hang Seng closed at 26,393.71 and the Nikkei at 62,713.65, while Australia fell 1.5%, Singapore lost 0.3%, China was flat and South Korea edged up 0.1%.
In Hong Kong, SMIC dropped 4.4%, Hansoh 3.8% and WuXi AppTec 3.4%, while Kuaishou jumped 9.4%, Baidu 5.8% and Longfor 5.5%.
In Japan, Yokogawa sank 9.8%, but Sumco surged 18.0%. The declines followed earlier regional risk-off trading linked to renewed US-Iran hostilities around the Strait of Hormuz.
With the Strait of Hormuz blockaded, what is the true breaking point for the global economy and its supply chains?
Beyond the immediate conflict, what long-term shifts in global power could this escalating Middle East war trigger?
As the blockade halts one-third of global fertilizer trade, how can a looming worldwide food security crisis be averted?
Renewed U.S.-Iran Hostilities Near Strait of Hormuz Trigger 3% Oil Surge and Global Market Volatility
Overview
Renewed military clashes between the U.S. and Iran near the Strait of Hormuz on May 7-8, 2026, shattered a fragile ceasefire and triggered a sharp 3% surge in oil prices alongside a drop in U.S. stock futures. This escalation worsened an ongoing blockade and conflict that began in February, which had already severely disrupted global energy supplies and stranded over 1,600 vessels with 20,000 seafarers. The energy supply shock has hit Asia hardest, causing electricity shortages and inflation, while prompting international efforts to establish safe maritime corridors. Attempts like the U.S. Project Freedom military operation escalated tensions but failed to break Iran’s control, leaving the crisis unresolved and global markets vulnerable.