BlockBeats news, March 23, the situation in the Middle East continues to escalate. U.S. President Trump issued a 48-hour ultimatum to Iran, demanding it to 'unconditionally open' the Strait of Hormuz, or face strikes on critical infrastructure, including power plants. Iran responded firmly, stating that if attacked, it would 'completely block' this global energy artery and expand its counterattacks to energy, information technology, and desalination facilities. The current conflict has entered its fourth week, with approximately one-fifth of the world's oil and gas transportation disrupted, significantly increasing energy supply risks.
At the same time, both the US and Iran are brewing potential negotiations, but significant differences remain. The two sides have not directly contacted each other, communicating only through multilateral indirect channels. Iran has proposed tough conditions including the closure of US military bases, compensation for losses, and a restructuring of the rules in the Strait of Hormuz; meanwhile, the US demands a halt to uranium enrichment, restrictions on missile development, and cessation of support for regional armed groups, making the likelihood of reaching a ceasefire or agreement in the short term quite low.
Due to the spillover effects of geopolitical risks, global financial markets are experiencing severe fluctuations. Asian stock markets have collectively plunged, with the Nikkei 225 index's decline expanding to 5%, the South Korean KOSPI index dropping by 6%, and the Taiwan Weighted Index opening down more than 3%. The FTSE China A50 futures are weakening. Safe-haven assets are showing mixed performance, with spot gold falling below $4370 per ounce to a low for the year, and spot silver dropping over 4%; meanwhile, oil prices continue to rise. The currency market is also under pressure, with the Korean won against the US dollar hitting a new low since 2009, indicating that capital is rapidly flowing into safe-haven and dollar-denominated assets.
Market analysis suggests that with the escalation of the Middle East conflict and the overlap of energy shocks, global risk assets are facing selling pressure, liquidity is tightening, and short-term market volatility may further intensify.