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South Korea’s Kospi down 5% as Asian shares fall after Trump’s Iran threats

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South Korea’s Kospi plunged 5% and Asian shares fell sharply after the U.S. and Iran threatened to target crucial infrastructure as the Iran war entered its fourth week.

In early Asian trading on Monday, Kospi tumbled as much as 6.3% before paring back some losses, while Japan’s Nikkei 225 by 4.3% to 51,088.30.

Hong Kong’s Hang Seng lost 2.8% to 24,580.11, while the Shanghai Composite index was down nearly 2% to 3,879.86.

U.S. President Donald Trump warned on Saturday that the U.S. will “obliterate” Iran’s power plants if the Strait of Hormuz, a critical waterway for global oil supply, was not fully opened within 48 hours. Iran on Sunday said if the threat was followed through, it would retaliate by attacking key energy and infrastructure assets.

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