Stock markets plunge after Trump’s ultimatum on Iran

Stocks slump in Asia and Europe, gold slides and investors brace for higher oil prices after US president’s threat

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Global stock markets dropped sharply on Monday after Donald Trump threatened to “obliterate” Iran’s power plants unless the strait of Hormuz is opened.

Stock markets in Asia and Europe slumped at the start of the week. Japan’s Nikkei share index dropping by 3.4%, China’s CSI 300 down 2.8%, and the South Korean Kospi fell 6.5%.