Asian Stocks Erase 2026 Gains as Iran War Fuels Inflation Fears

• Asian equities tumbled, wiping out 2026 gains due to the prolonged Iran war and surging energy prices.
• The MSCI Asia Pacific Index dropped 1.1%, with chipmakers Samsung Electronics and SK Hynix leading the decline.
• Optimism from AI-led demand and tech rallies has faltered as investors reassess risks from the five-week-long Iran war.
• Rising crude oil prices and supply disruptions are clouding the economic outlook, leading to fears of sustained high interest rates.
• Asian economies are highly vulnerable to oil price shocks due to heavy reliance on energy imports from West Asia.