Thai equities fell sharply on Monday, mirroring declines across Asian markets, as escalating tensions between the United States and Iran — alongside Israel’s plans for prolonged military action — rattled investor sentiment and triggered renewed volatility in oil prices.
The Stock Exchange of Thailand (SET) index dropped 25.57 points, or 1.78%, to 1,407.42 within the first 40 minutes of trading.
Major stocks led the decline, with Delta Electronics falling nine baht, or 3.35%, to 260, while Advanced Info Service slid 11 baht, or 2.89%, to 369. Other notable laggards included Gulf Development, Airports of Thailand and CP All.
Across the region, markets also retreated after Iran warned it could target energy and water infrastructure in neighbouring Gulf states if US President Donald Trump follows through on threats to strike Iran’s power grid within 48 hours — dimming hopes for a near-term resolution to the conflict, now entering its fourth week.
President Trump also warned that Iran had two days to fully reopen the strategic Strait of Hormuz, which remains largely inaccessible to commercial shipping due to security concerns.
Japan’s Nikkei index fell 3.8%, bringing its losses for March to more than 13%, while South Korea’s market dropped 5.2%, extending its monthly decline to 12%. MSCI’s broad Asia-Pacific index excluding Japan slipped 2.5%, and Chinese blue-chip stocks declined 1.9%.
Oil markets remained volatile, with Brent crude edging up 0.4% to US$112.62 per barrel — a gain of 55% so far this month — while US crude rose 0.8% to $98.98.
Short-term supply has been supported by US measures allowing Iranian and Russian oil shipments to reach the market. However, growing concerns over longer-term supply disruptions have pushed futures higher, with September Brent rising to $92.90, indicating expectations of sustained elevated prices.
Shane Oliver, head of investment strategy at AMP, warned the conflict could persist for weeks, potentially driving oil prices as high as $150 per barrel. He added that ongoing damage to energy infrastructure would prolong recovery efforts and keep supply constrained.
He also noted that previous oil shocks developed over extended periods — around four months in 1973 and nearly a year in 1979 — as markets gradually absorbed the full impact.
HSBC analysts highlighted sharp increases in energy-related costs, with Singapore jet fuel prices surging 175% this year to multi-decade highs, while Asian liquefied natural gas prices have risen 130%. Bunker fuel costs have also climbed significantly, increasing shipping expenses, while higher fertiliser prices are expected to push up food costs.
International Energy Agency executive director Fatih Birol described the current situation as “very severe”, warning it could surpass the scale of the oil crises experienced in the 1970s.