Asian equities retreated while oil prices advanced after Donald Trump gave Iran a 15-day deadline to reach an agreement on its nuclear programme, warning of “really bad things” if no deal is struck.
Defense officials have reportedly informed Mr. Trump that U.S. forces would be prepared for military action by Saturday, following the largest American military buildup in the region since the 2003 invasion of Iraq.
The United States is assembling contingency plans for a potential direct strike on Iran, deploying long-range bombers and aerial refuelling aircraft to the Middle East in recent days as part of its preparations.
Japan’s Nikkei fell 1%, and Hong Kong’s Hang Seng declined 0.6% as trading resumed following the Lunar New Year holiday, with losses concentrated in e-commerce and technology stocks.
Brent crude climbed to a near seven-month high above $72 a barrel following the ultimatum to Tehran, reflecting heightened geopolitical risk.
In currency markets, the dollar was on track for its strongest weekly performance in four months, supported by firmer US economic data and Federal Reserve minutes indicating no urgency to cut interest rates. For the week, the dollar gained roughly 1% against the euro, pushing the single currency down to around $1.175.
US equities closed lower on Thursday as concerns over escalating tensions between Washington and Tehran weighed on sentiment. The Dow Jones Industrial Average fell 0.5%, while the S&P 500 and the technology-heavy Nasdaq Composite each declined 0.3%.
