The Korea Exchange said on March 4 it activated a circuit breaker on the KOSPI after the index dropped 8%, halting trading for 20 minutes, Reuters reported. Trading resumed after the temporary suspension, but the benchmark index extended its losses to 11% shortly thereafter.

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The KOSPI has declined 14% over the past three trading sessions, according to Reuters data, marking one of its sharpest short-term falls in recent years.

Asia Markets Slide For Third Straight Session

Asian equity markets fell sharply for a third consecutive session as the ongoing U.S.-Iran military conflict raised concerns over potential disruptions in oil supplies and higher energy costs, Reuters reported.

Japan’s Nikkei index fell 2.5% on March 4, extending its losing streak to a third session. Japan and South Korea are among the world’s major energy importers, making their markets sensitive to fluctuations in crude oil prices.

Benchmark Brent crude futures rose more than 12% for the week to $81.40 per barrel, according to Reuters. Prices eased from session highs after U.S. President Donald Trump ordered an insurance guarantee on Gulf shipping and said the U.S. Navy could escort oil tankers through the Strait of Hormuz if required.

Oil Infrastructure Targeted In Escalating Conflict

Reuters says that U.S. and Israeli forces have attacked Iran for four days in a row. At the same time, Iranian drones and missiles have hit oil refineries in the Gulf and U.S. embassies in Saudi Arabia and Kuwait.

The increase in tensions has made people more concerned about the energy infrastructure and supply routes in the region, and this is why the financial markets around the world have become more unstable.

According to Reuters, "gold fell 4.5 percent overnight and the Australian dollar 0.8 percent."Gold stayed steady at $5,128 per ounce in early Asian trade. Futures in the U.S. were mixed, with S&P 500 futures staying the same and European futures rising 0.8%. The S&P 500 on Wall Street dropped 0.8% in the last session.

The sharp decline in South Korea’s stock market reflects broader regional pressure as investors react to geopolitical developments and movements in global oil prices.