Asian markets tumbled Friday as fears of disrupted oil shipments through the Strait of Hormuz pushed Brent crude above $100 per barrel. Japanese stocks fell 0.9% while South Korean markets plunged 2.4% as investors braced for potential supply chain disruptions. The rising energy costs triggered a flight to safety, with regional currencies strengthening against the dollar.

The Korean won and Japanese yen both gained ground, rising 0.3% and 0.2% respectively against the dollar as traders sought refuge from market volatility. The dollar index slipped 0.1% against major trading partners. Meanwhile, US Treasury yields dipped slightly to 4.26% after a modest rise the previous day, reflecting investor caution amid geopolitical tensions.

This market reaction highlights how Middle East tensions directly impact global financial markets. The oil price surge threatens economic recovery prospects across Asia, particularly energy-importing nations like Japan and South Korea. Investors will monitor developments closely as even minor disruptions to critical shipping lanes could trigger further market volatility.