US-Iran clashes trigger Asian market crash, spike oil and bond yields

On September 2, 2026, Asian markets experienced a sharp decline, with indices in Tokyo, Seoul, and Singapore falling by 2-3% in early trading. The Jakarta Post and The Straits Times reported that the turmoil was directly linked to rising tensions between the United States and Iran, which had intensified following a series of military strikes in the Persian Gulf. Oil prices surged past $95 per barrel as fears of supply disruptions grew. Bond yields, particularly in US Treasuries, rose sharply as investors sought safer assets amid geopolitical uncertainty. The conflict, which began with US airstrikes targeting Iranian-backed militias in Iraq, escalated further when Iran launched a coordinated attack on US military installations in the region. The Jakarta Post noted that the attacks were part of a broader strategy to disrupt US operations, while The Straits Times cited intelligence reports suggesting the strikes were a response to US drone strikes in Iran. Both outlets agreed that the conflict had significant implications for global energy markets and financial stability, though they differed slightly in the timing and scale of the attacks reported.