Asian stocks fall as renewed Iran tensions lift oil prices
Asian markets retreated on Friday while oil prices climbed after fresh missile and drone attacks raised concerns over the stability of the fragile ceasefire between the US and Iran.
Brent crude rose towards $103 a barrel as investors reacted to renewed tensions around the Strait of Hormuz, a critical artery for global energy exports.
In Japan, the Nikkei 225 fell 1.1% to 62,174.12, with SoftBank Group dropping more than 5%.
Elsewhere across the region, South Korea’s KOSPI lost 1.1%, Hong Kong’s Hang Seng Index fell 1.3%, and China’s Shanghai Composite slipped 0.3%.
Australia’s S&P/ASX 200 dropped 1.7%, while Taiwan’s Taiex and India’s Sensex also moved lower.
The renewed market volatility followed reports from US Central Command that Iranian forces launched missile and drone attacks targeting US naval vessels in the Gulf, although no ships were hit.
Meanwhile, United Arab Emirates officials said air defence systems were actively intercepting further missile and drone attacks early on Friday.
Despite the escalation, Donald Trump insisted the ceasefire with Iran remained in place.
On Wall Street, major indices retreated modestly after hitting record highs earlier in the week. The S&P 500 fell 0.4% to 7,337.11, while the Nasdaq Composite slipped 0.1% to 25,806.20. The Dow Jones Industrial Average closed 0.6% lower at 49,596.97.
