Middle East Conflict Enters Fourth Week: Gold and Silver Market Value Evaporates 2 Trillion USD in Three Hours, South Korean KOSPI Halts Again

Tensions between the U.S. and Iran escalate again, with Trump’s ultimatum to block the Strait of Hormuz triggering panic in financial markets. The combined market value of gold and silver evaporated by $2 trillion in just three hours, and Asian stock markets plummeted across the board. The Korean stock market triggered a circuit breaker, and Taiwan’s stocks once dropped more than 1,000 points during trading, with TSMC struggling to hold above NT$1,800.

Trump issues final warning, U.S.-Iran confrontation sparks market concerns

Conflict between Iran and Israel enters its fourth week. Over the weekend, U.S. President Trump issued a final warning to Iran, demanding the reopening of the Strait of Hormuz within 48 hours, or else military strikes will target Iran’s power plants. Iranian authorities stated that if infrastructure is bombed, they will completely block this vital maritime route, which carries about 20% of global oil shipments daily, and will retaliate against U.S. and Israeli energy, information technology, and seawater desalination facilities in the Middle East.

Meanwhile, U.S. officials revealed that the White House is deploying over 2,000 Marines to the Middle East and evaluating military plans to seize Iran’s key oil export hub, Khark Island. U.S. Secretary of the Treasury Janet Yellen refused to predict when oil prices might fall back, only stating that Trump will take all necessary measures to achieve American goals.

(When will the Strait of Hormuz return to normal? Extreme scenario analysis suggests oil prices could surge to $175)

Gold and silver market value evaporates $2 trillion in three hours

Global financial markets reacted violently and chaotically to the situation. The abnormal plunge in precious metals markets drew particular attention, with gold and silver losing a combined market value of about $2 trillion in just three hours. Spot gold prices fell more than 3% in a single day, nearly erasing all gains made this year.

(Gold drops below $4,500! Stocks, bonds, and gold all decline— is cash still the safest haven?)

Research firm The Kobeissi Letter pointed out that such intense and sustained selling of precious metals may reflect a major institution facing forced liquidation.

Adding to the woes, the yield on the 10-year U.S. Treasury note has risen 45 basis points in three weeks, now reaching 4.40%. The rising interest rate environment continues to pressure various assets, further tightening market liquidity.

Nikkei drops over 2,000 points in a single day, KOSPI falls more than 6%, triggering a circuit breaker

Asian stock markets also suffered on Monday. Japan’s Nikkei 225 opened lower and declined further, with a maximum drop of over 2,000 points during trading, a nearly 3.8% decrease, closing at 51,582.

South Korea’s KOSPI index was even more severely affected, opening down 3.5% and continuing to fall, with a maximum decline of over 6% during the session. Major stocks like Samsung Electronics, SK Hynix, and Hyundai Motor fell between 5% and 8%. KOSPI 200 futures triggered a 5% limit-down circuit breaker, halting trading for five minutes.

Hong Kong’s Hang Seng Index opened down 488 points, breaking below 25,000 points for the first time since mid-August 2025, reaching a new seven-month low.

Taiwan stocks gap down more than 1,000 points, TSMC briefly falls below NT$1,800

Taiwan stocks also opened sharply lower on Monday, with the lowest point reaching 32,461. The decline in a single day hit as high as 1,082 points, approaching the 32,000 level. The decline then stabilized somewhat, with the market consolidating.

TSMC was hit hardest, briefly falling below NT$1,800, with a low of NT$1,785. Fortunately, buying interest soon returned, and the stock recovered above NT$1,800.

Options expiration releases huge amounts of capital; volatility remains high this week

With last Friday’s “triple expiration day,” where options worth a total of $5.7 trillion—linked to U.S. stocks, indices, and ETFs—expired, marking the largest March triple expiration in nearly 30 years.

The Kobeissi Letter analyzed that such a massive options expiration has released hundreds of billions of dollars in idle capital. Coupled with current geopolitical uncertainties, market liquidity gaps are expected to widen further this week. The firm warned investors to prepare for greater volatility.

This article, “Middle East Conflict Enters Fourth Week: Gold and Silver Market Value Evaporates $2 Trillion in Three Hours, KOSPI Circuit Breaker Triggered,” was first published on Chain News ABMedia.