Asian equity markets opened lower on Tuesday, with South Korea's Kospi index dropping 2.01% and Japan's Nikkei 225 declining 1.17%.
The broad-based sell-off was driven by fresh geopolitical developments in the Middle East, specifically a proposal by US President Donald Trump to impose a fee on vessels transiting the Strait of Hormuz.
The announcement also included a reintroduction of a blockade on Iranian shipping, escalating the ongoing military conflict between the United States and Iran.
The market reaction underscores the sensitivity of global equities to disruptions in key energy chokepoints.
The Strait of Hormuz remains a critical artery for global oil supplies, and any policy that increases transit costs or restricts flow directly threatens energy price stability.
Investors are increasingly pricing in the risk of higher crude oil prices, which could weigh on corporate margins and consumer spending across export-dependent economies like South Korea and Japan.