Asian markets declined on Thursday while US stock futures fell as investors reacted to renewed geopolitical tensions following US military strikes on Iran, raising concerns over global energy supplies and broader market stability.
Futures tied to major US indexes fell by as much as 1%, while Asian equities retreated across several markets amid rising risk aversion.
According to reports, the US military carried out what officials described as “defensive strikes” targeting Iranian positions after heightened tensions near the Strait of Hormuz. The developments renewed fears of disruption to one of the world’s most critical oil shipping routes.
Oil prices rebounded sharply after the strikes, with Brent crude and US West Texas Intermediate futures climbing nearly 4% following heavy losses in the previous session.
Asian markets reacted negatively to the escalation.
Japan’s Nikkei index fell 1.4%, South Korea’s KOSPI dropped 3.2%, while MSCI’s broad Asia-Pacific index declined 2.1%, according to Reuters.
Hong Kong’s Hang Seng and China’s Shanghai Composite also traded lower as investors shifted toward safer assets amid uncertainty surrounding the conflict and its potential economic consequences.
Wall Street futures also weakened after recent record highs in US equities, with investors reassessing inflation risks linked to higher oil prices and the possibility of prolonged geopolitical instability.
Analysts said markets remain highly sensitive to developments surrounding the Iran conflict, particularly any threat to shipping activity through the Strait of Hormuz, a vital route for global crude exports.
Despite the latest military exchange, diplomatic efforts between Washington and Tehran are reportedly continuing, though investors remain cautious about the potential for further escalation.
