US-Iran strikes roil Asian markets
Analysis based on 14 articles · First reported Jul 16, 2026 · Last updated Jul 16, 2026
The escalation of U.S.-Iran strikes is driving risk-off sentiment in Asian markets, particularly hitting AI and semiconductor stocks, while oil prices remain elevated due to supply concerns through the Strait of Hormuz. The South Korea — Bank of Korea's rate hike adds pressure on South Korean equities, but U.S. futures and Wall Street show resilience, partly due to strong earnings and easing inflation.
On July 16, 2026, Asian shares mostly declined as the U.S. intensified strikes against Iran and Iran retaliated with missile and drone fire on Kuwait and Bahrain. The South Korea — Bank of Korea raised interest rates for the first time since 2023 to curb inflation from the Iran war, contributing to a 6.6% drop in the KOSPI. AI-related stocks fell sharply: SK Hynix dropped 11.2%, Samsung Electronics fell 8.2%, Kioxia plummeted 13.5%, Tokyo Electron fell 5.2%, Advantest fell 5.6%, and SoftBank Group shed 6.4%. The Nikkei 225 fell 2.9%. In contrast, Hong Kong's Hang Seng gained 1.7% as Alibaba shares rose 4.4% after China approved Apple Intelligence for use in China, with Alibaba's Qwen model integrated. TSMC announced an additional $100 billion investment in U.S. chipmaking capacity and reported record earnings. Oil prices slipped slightly but remained elevated: Brent crude at $84.55/barrel and WTI at $79.34/barrel. ING noted that U.S.-Iran tensions are impacting vessel flows through the Strait of Hormuz. U.S. futures edged higher, and Wall Street indexes rose on Wednesday: S&P 500 +0.4%, Dow +0.3%, Nasdaq +0.6%. BlackRock reported stronger-than-expected earnings, rising 6.6%. SpaceX briefly fell below its IPO price. The U.S. dollar fell against the yen and euro.
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