The conflict between Iran and the United States (US) has escalated again amid intensive negotiations aimed at reaching a peace agreement between the two countries.

Investment author Desmond Wira stated that the situation triggered sharp corrections across Asian stock markets, with South Korea’s KOSPI index falling around 3.4% and Hong Kong’s Hang Seng index declining approximately 2.3%.

“Asian stock markets corrected as tensions between the US and Iran intensified once again. The worst decline was seen in the KOSPI, which dropped 3.4%, while the Hang Seng fell 2.3%. The IHSG is temporarily ‘saved’ because the market is on holiday. We’ll see what happens on Friday,” Desmond wrote on his personal X account on Thursday (28/5).

Meanwhile, the Indonesia Composite Index (IHSG) has so far avoided direct pressure because the domestic market is closed for the Eid al-Adha 1447 H collective holiday.

Earlier, the United States Central Command (CENTCOM) confirmed that it had carried out a limited defensive strike against drone units belonging to Iran’s Islamic Revolutionary Guard Corps (IRGC) in Bandar Abbas, a strategic port city located near the Strait of Hormuz.

The strike was launched because the site was considered to pose a direct threat to US forces and the safety of maritime traffic along one of the world’s most critical oil shipping routes. US forces reportedly shot down four Iranian attack drones and destroyed one ground control station before a fifth drone could be launched.

In response, Iran launched missile and drone attacks toward Kuwait targeting US military assets. Warning sirens and air defense systems were activated to intercept the incoming projectiles.