World News for Students of English

06-03-2026 07:00

Asian stock markets fell sharply as investors reacted to fears that the Middle East war could cause an energy shock.

Concerns about rising oil prices and higher inflation led many investors to sell shares, especially in technology and chipmaking companies. South Korea’s KOSPI index dropped more than 11%, while Japan and Taiwan also saw losses of over 4%.

Analysts say markets now believe the conflict may last longer than expected, which increases uncertainty and risk. Investors worry that higher energy costs could delay interest rate cuts and weaken economic growth. Instead of panic selling, experts describe a gradual shift toward safer assets such as cash and gold. Some investors are reducing risk in their portfolios because the situation looks more unpredictable.

Overall, markets are adjusting to the possibility of a long-term conflict that could have lasting economic effects, especially through energy prices and inflation pressure.

Difficult words: concern (a feeling of worry about something), gradual (happening slowly, step by step), portfolio (a collection of investments).

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