New Delhi [India], March 30 (ANI): Asian markets witnessed sharp selling pressure on Monday morning, with major indices declining significantly amid rising energy prices and escalating tensions in West Asia.

Japan's Nikkei 225 fell by approximately 5 per cent to 50,950 level, while South Korea's KOSPI declined by around 4 per cent to 5,240 level.

Other Asian markets also traded lower, reflecting weak investor sentiment. Hong Kong's Hang Seng index dropped 1.69 per cent to 24,533 level, Taiwan's Weighted index declined 1.86 per cent to 32,488 level, and Singapore's Straits Times index slipped 0.26 per cent to 4,885 level.

The sell-off comes amid a sharp rise in global crude oil prices, with Brent crude surging to USD 115.61 per barrel, raising concerns over inflation and economic stability.

The ongoing conflict in West Asia has completed one month since it began on February 28, involving the United States, Israel and Iran. The situation has escalated into a major regional crisis with no immediate signs of de-escalation.

Attacks on energy infrastructure in the region have disrupted global energy exports, while Iran's control over the Strait of Hormuz has led shipping companies to suspend passage, further tightening supply and pushing prices higher.

Market experts warned of broader financial risks emerging from the crisis.

Ajay Bagga, banking and market expert, told ANI, 'There are three brewing crises in the financial world right now. We don't understand the scale or interaction of these. It could be '2007 leading to a full blown 2008' along with a Dot Com Crash 2.0 thrown in for good measure.'

He added, 'Massive private credit exposure, with retail investors in the dock as well, multiple funds suspending redemptions at the same time. The largest energy disruption in human history, with no off ramp in sight.'

Bagga further noted that bond markets are struggling to price in the risks amid record debt levels, high fiscal deficits, rising inflation and weakening economic output, while central bank actions are becoming less effective.

Meanwhile, the United Nations has raised concerns over the broader global impact of the crisis. According to a statement conveyed by spokesperson Stephane Dujarric, UN Secretary-General Antonio Guterres has announced the formation of a dedicated task force to address disruptions in maritime traffic through the Strait of Hormuz.

The UN warned that continued disruption in the key shipping route could have significant ripple effects on humanitarian supplies and agricultural production worldwide.

So, the ongoing geopolitical tensions and rising energy prices have increased the global market volatility. (ANI)