Asian markets experienced a severe sell-off today. Following the opening of the Asia-Pacific session, Japanese and South Korean stock markets plummeted across the board. As of the latest update, the Nikkei 225 index plunged by more than 2600 points, with the intraday loss widening to 4.9%. The Korea Composite Index also crashed by over 6%. Additionally, the Korea Exchange activated a circuit breaker for the KOSPI index after KOSPI 200 futures dropped by 5%, leading to a 5-minute suspension of program trading. On the geopolitical front, according to the latest report from CCTV News, several loud explosions were heard in Iran's capital, Tehran, around 3:10 a.m. local time on the 23rd. Separately, Xinhua News Agency reported that Iran's Islamic Revolutionary Guard Corps announced in the early hours of the 23rd that it had launched the 75th wave of attacks under "True Promise-4," with targets including multiple Israeli military deployment sites and the U.S. military's Prince Sultan Air Base in Saudi Arabia. South Korean markets faced a sharp decline and trading halt on March 23. After the opening of Japanese and South Korean stock markets, major indices fell sharply. The Nikkei 225 index dropped by more than 2600 points, with the intraday loss widening to 4.88%. The Korea Composite Index plummeted by 6.34%, with Samsung Electronics falling over 5% and SK Hynix plunging more than 6%. Futures for the three major U.S. stock indices also declined collectively: Dow Jones Industrial Average futures fell 0.55%, S&P 500 futures dropped 0.62%, and Nasdaq 100 futures declined 0.78%. Last Friday, U.S. stock markets closed sharply lower, with the S&P 500 falling 1.51% and the Nasdaq dropping 2.01%, both closing at their lowest levels since September 2025. The Dow Jones Industrial Average fell 0.96%, marking its lowest close since last October. Major U.S. technology stocks suffered significant losses. Precious metals markets also saw selling pressure, with spot gold falling below $4350, down 3.42% intraday. Analysts pointed out that escalating tensions in the Middle East have intensified panic in financial markets, with investors concerned that the conflict could further intensify and potentially persist for some time. Additionally, surging oil prices have heightened expectations of interest rate hikes by the Federal Reserve. According to the CME FedWatch Tool, the probability of a 25-basis-point rate hike by the Fed in April is 12.4%, while the likelihood of keeping rates unchanged stands at 87.6%. For June, the probability of a cumulative 25-basis-point hike is 21.9%, with a 1.6% chance of a 50-basis-point increase and a 76.5% probability of unchanged rates. A Goldman Sachs trader warned that energy prices have become the core variable driving all macro asset movements. Iran currently holds the most significant leverage over the global economy, and the likelihood of a swift reopening of the Strait of Hormuz is extremely low. The convexity of energy prices remains skewed to the upside. If energy pressures persist, rate hikes by the European Central Bank and the Bank of England could occur earlier than previously expected. Without large-scale fiscal responses, substantial tightening in front-end rate pricing implies significant downside growth risks. Goldman Sachs updated its forecast, now projecting the average Brent crude price for 2026 at $85 per barrel (up from a previous estimate of $77), and WTI crude at $79 per barrel (previously $72). Multiple loud explosions were reported in Tehran. According to CCTV News, several loud explosions were heard in Iran's capital, Tehran, around 3:10 a.m. local time on the 23rd. Exclusive footage captured by a CCTV reporter showed one explosion site located in the eastern part of Tehran. Following the explosions, Tehran's air defense systems were activated, continuously intercepting unidentified aerial objects. On March 22, the Iranian armed forces issued a statement warning that if U.S. President Trump's threat to attack Iranian power plants is carried out, Iran would immediately implement four "punitive" measures, including a full closure of the Strait of Hormuz. The statement emphasized that Iran has repeatedly stated that the Strait of Hormuz is only closed to enemies and "harmful passage" and has not been completely blocked, remaining under Iran's "smart control." "Within a specific regulatory framework, innocent passage continues under conditions that ensure our security and interests." The statement warned that if the U.S. acts on its threat to attack Iranian power plants, Iran will take four punitive measures: the Strait of Hormuz will be fully closed until damaged Iranian power facilities are rebuilt; a wide range of Israeli power facilities, energy, and communication infrastructure will be targeted; all U.S.-owned companies in the Middle East will be completely destroyed; and power facilities in all countries hosting U.S. military bases in the region will become legitimate targets. The statement declared, "If the enemy causes damage to our power facilities, we will defend our national interests at any cost, initiating an uninterrupted process of destroying the aforementioned targets." On the evening of March 21, President Trump posted on social media, demanding that Iran open the Strait of Hormuz within 48 hours or face attacks on "various power plants" in Iran, which would be destroyed. On March 22, the Iranian Foreign Ministry issued a statement on maritime security in the Strait of Hormuz, stating that Iran has long been committed to ensuring navigation safety in the Persian Gulf, the Strait of Hormuz, and the Sea of Oman. Since February 28, military strikes by the U.S. and Israel against Iran have created a dangerous situation in the Persian Gulf and the Strait of Hormuz, directly impacting navigation and shipping safety. The statement asserted that U.S. and Israeli military actions against Iran violate the UN Charter and principles of international law. In exercising its right to legitimate self-defense, Iran has taken necessary measures to prevent certain countries from using the Strait of Hormuz for actions against Iran, in addition to targeting U.S. military facilities in the region. The statement clarified that the Strait of Hormuz is not currently closed, and maritime traffic continues. However, vessels and equipment belonging to the U.S., Israel, and other parties involved in military actions against Iran are considered "harmful passage" and will be dealt with according to relevant measures. Vessels from other countries and regions that do not participate in or support aggressive actions against Iran, comply with announced security regulations, and coordinate with Iranian authorities can pass through the Strait of Hormuz safely. The statement attributed responsibility for the security chaos and increased danger in the Strait of Hormuz and surrounding areas to the United States and Israel. It emphasized that security arrangements in the Persian Gulf and related waters must fully respect Iran's legitimate rights and interests. The statement concluded that lasting stability in the region depends on ceasing military actions and external interference.