Chinese shares closed lower on Monday as escalating geopolitical tensions between the United States and Iran weighed on risk appetite.
The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.6% lower to 3,882.01. The Shenzhen Component Index fell 2.1% to 13,794.29.
Investor anxiety was fueled by U.S. Treasury Secretary Scott Bessent's weekend warning of an impending "economic D-Day for Iran." Bessent threatened consequences for any nation continuing to engage in business with Tehran, signaling an intensification of Washington's financial offensive.
Iran's top security official, Mohsen Rezaei, shot back with a counter-threat, vowing to "neutralize the economic war" and warning that Tehran would cut off all oil flows through the crucial Strait of Hormuz if American pressure escalates.
In company news, Far East Smarter Energy (SHA:600869) posted first-half attributable net profit of 205.4 million yuan, up 43% from 143.5 million yuan the previous year. Shares of the smart energy service provider fell 4% Monday.