European propane hit fresh high on US-Iran war

Asian currencies, stock markets wobble on Iran crisis

Asian currencies, stock markets wobble on Iran crisis

Singapore, 4 March (Argus) — Currencies in oil-dependent economies in Asia-Pacific fell to new lows against the dollar today, adding to import costs, while stock markets in the region slumped as the US-Iran war worsened supply disruptions. Currencies in net oil importers including India, Indonesia and China all came under pressure. The Indian rupee fell by as much as 0.9pc to a record low against the dollar, currency data show. The Indonesian rupiah, which has steadily declined in value in recent years, fell even further. China's central bank set a stronger daily reference rate for the yuan, just days after loosening the rate in a sign that it had been prepared to let its currency weaken. The US dollar has strengthened since the start of the Iran war, increasing import costs for buyers of dollar-denominated commodities including crude. That adds to the pain of rising crude prices, which continued to increase today . The increases in oil prices, prospect of higher inflation and continued violence in the Middle East sparked sharp falls in Asian stock markets today. South Korea's Kospi index slumped by almost 13pc, in what appeared to be the biggest single-day decline since the global financial crisis. Thailand's Set 50 index was the next worst hit, dropping by more than 8pc. Stock markets in Japan, Indonesia and Taiwan fell by at least 3-4pc. Airline stocks were hard hit, as the US-Israeli attacks on Iran, and Tehran's retaliation against US allies in the region, continued to disrupt travel. The stock market slump in Asia has outstripped more modest declines in indexes in the US, which is a net crude exporter and so benefits in part from gains in oil prices — despite the political sensitivity of rising gasoline prices. The impact of the Iran war is now starting to be felt more widely in the region, including southeast Asia. Indonesia said it is considering shifting some of its crude oil imports from the Middle East to other countries including the US, despite the longer shipping times. At least one refinery in Singapore has cut run rates and others are considering scaling back operations. And Vietnam's PV Gas Trading today issued a force majeure on LPG deliveries to customers in the south of the country, because of disruptions caused by the Middle East conflict and an accident at major supplier state-controlled Saudi Aramco last week. The Iran crisis is also spreading in more unexpected ways. Impoverished, conflict-hit Myanmar yesterday announced restrictions on the use of private vehicles to conserve fuel, telling drivers they are only allowed to use their cars on alternate days. The country relies heavily on imports from neighbouring Thailand, which banned oil exports on 2 March to ensure domestic supplies. Fuel availability is a key concern for Myanmar's ruling military junta, which has faced previous large-scale protests caused partly by higher fuel prices and inflation. By Kevin Foster Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.