09.03.202602:25:48UTC+00China Stocks Fall as Iran War Hits Markets

The Shanghai Composite Index fell 1.6% to below 4,060, while the Shenzhen Component Index lost 2.6% to 13,810 on Monday, extending the previous week’s decline. The selloff came as Brent crude surged above $100 per barrel amid an escalating conflict in the Middle East, heightening inflation risks and clouding the global growth outlook. The US-Israel war with Iran has entered its second week with no clear resolution in sight, and key Middle Eastern producers have cut output as shipments through the Strait of Hormuz remain suspended. China, the world’s largest energy importer, is partly cushioned by its sizable strategic crude reserves. On the domestic front, data showed annual inflation in February climbed to a three-year high, driven in part by robust Lunar New Year holiday spending. Among the notable losers were Zhongji Innolight (-5.6%), Eoptolink Technology (-5.8%), Suzhou TFC (-7.6%), Zijin Mining (-4.9%), and Victory Giant (-5.1%).