South Korea’s benchmark Kospi index leads Asian market sell-off, despite Donald Trump’s suggestion that US Navy could protect vessels moving through vital strait of Hormuz
Global markets tumbled further on Wednesday despite Donald Trump’s offer to have the US navy escort tankers through the strait of Hormuz and the US military’s claim that there is “not a single Iranian ship underway” in the crucial waterway.
The Middle East conflict has crippled the strait which was in effect closed by Iran after strikes by the US and Israel this weekend, raising fears of a sustained energy supply crisis that reverberated around the world.
David Solomon, CEO of Goldman Sachs, cautioned it would take “a couple of weeks” for markets to process the impact of the US-led military operation in the region.
As Asian stock markets came under fresh pressure on Wednesday, trading in Seoul was suspended as South Korea’s benchmark Kospi share index fell by as much as 11.3%, before pulling back to trade down 7.7%. Japan’s Nikkei 225 fell 3.9% in Tokyo.
