US-Iran Jitters Shake Asian Markets, Oil Surges | The Asia Trade 2/20/2026

Escalating US-Iran tensions triggered market volatility across Asia on February 20, 2026, with investors shifting to safe-haven assets amid fears of geopolitical instability disrupting regional trade flows. Oil prices surged over 5% as traders anticipated supply chain disruptions in the Strait of Hormuz, a critical chokepoint for global energy shipments, exacerbating inflation concerns in import-dependent Asian economies. Tokyo and Singapore stock exchanges saw sharp declines, with tech and shipping sectors hardest hit, as analysts warned of prolonged uncertainty if diplomatic talks between Washington and Tehran stall further. Currency markets reacted swiftly, with the yen and Swiss franc gaining against the dollar as traders sought stability, while emerging-market currencies like the Indian rupee and South Korean won weakened. Experts on Bloomberg’s Asia Trade highlighted potential spillover effects on semiconductor supply chains, given Iran’s strategic position near key shipping routes for chip materials bound for East Asia.