South Korea's Kospi leads losses in Asia as won slides to 2009 low amid Iran war worries

Asia-Pacific markets declined on Tuesday, with South Korea leading the losses, as rising crude oil prices and the raging Middle East conflict keeps investors on edge.

U.S. President Donald Trump escalated his threat on Monday, saying that the U.S. would destroy Iran's electricity-generating plants, oil wells and Kharg Island, if the strategically vital Strait of Hormuz remains closed and no peace deal is reached to end the war.

His remarks came as the Iran war entered its fifth week and as the Trump administration weighs sending in ground forces to seize Kharg Island, a major fuel hub that facilitates 90% of Iran's crude exports.

Shipping traffic through the Hormuz waterway, through which a fifth of the global seaborne oil used to transit before the conflict, has virtually ground to a halt since U.S. and Israel launched strikes on Iran on Feb. 28.

The West Texas Intermediate rose 2.8% to $105.8 per barrel. May futures for the International benchmark Brent crude surged 2% to $115.17 per barrel.

South Korea's blue-chip Kospi led the losses in Asia, dropping over 4% while the small-cap Kosdaq lost more than 3%. The Korean won depreciated 0.63% to 1,526.9 against the U.S. dollar, hitting its weakest level since 2009.

Japan's Nikkei 225 dropped 2.2% while the broad-based Topix slid 1.4%.

Australia's S&P/ASX 200 tumbled 0.56%.

Hong Kong Hang Seng index futures were at 24,683, compared with the index's last close of 24,750.8.