Asian currencies came under renewed pressure as escalating tensions between Iran and the United States unsettled regional financial markets and raised concerns over energy supply routes.
Currency markets across Asia reacted sharply to developments in the Gulf, particularly fears linked to instability in the Strait of Hormuz, a vital global oil shipping corridor.
Rupiah hits record low, Asian currencies weaken
The Indonesian rupiah dropped to its lowest level on record, falling to 17,315 per US dollar, marking a significant setback for Southeast Asia’s largest economy.
The Philippine peso also weakened, sliding to a two-week low, while Thailand’s baht extended its monthly losses as investors reassessed risk across emerging markets.
Analysts said rising geopolitical uncertainty has triggered capital outflows from Asian assets, pushing regional currencies lower against the dollar.
Gulf tensions rattle markets
Market sentiment was further shaken by concerns that any disruption in the Gulf could affect global oil supplies and fuel prices, adding inflationary pressure to import-dependent Asian economies.
Investors remain cautious as the situation in the Strait of Hormuz continues to evolve, given its importance in transporting a large share of the world’s oil exports.
Also read: Houthis Threaten to Close Bab el-Mandeb as Iran Tightens Control of Strait of Hormuz
Pentagon warns on mine clearance timeline
Adding to market unease, the Pentagon said the removal of naval mines from the Strait of Hormuz could take up to six months, and would likely begin only after the conclusion of any conflict between Iran and the United States.
US defense officials told lawmakers that clearing mines following a war would be a time-consuming and technically complex process, potentially prolonging disruptions to shipping routes.
Advanced mines raise security concerns
A senior US official briefing Congress said some of the mines were deployed remotely using GPS technology, making them harder to detect during placement.
The revelation has raised additional concerns among investors about maritime security and the potential for extended volatility in oil and currency markets.
Outlook remains uncertain
Economists warn that continued Iran–US tensions could keep Asian currencies under pressure, particularly if energy prices rise or shipping routes face prolonged disruption.
Until geopolitical risks ease, analysts expect currency volatility across Asia to remain elevated, with investors closely watching developments in the Gulf and policy responses from regional central banks.
