Fresh US-Iran tensions push oil prices higher, Asian stocks slip

Oil prices rebounded on Thursday after new US military action against Iran added pressure to an already fragile ceasefire in the Middle East, while most Asian stock markets moved lower.

The rise in crude prices wiped out much of the previous session’s declines, which had followed hopes of a possible agreement to end the conflict and ease disruptions to shipping through the Strait of Hormuz.

A US official told AFP that American forces had downed four Iranian drones and carried out strikes on a control centre in Bandar Abbas, southern Iran.

The official said the actions were “measured, purely defensive, and intended to maintain the ceasefire”.

Iranian state media claimed Iranian forces had opened fire on four vessels in the strait, while Kuwaiti authorities reported responding to missile and drone threats with air defence systems.

The tensions emerged even as an Iranian official said another direct conflict with the United States was unlikely. However, President Donald Trump warned Washington would “finish the job” if peace negotiations failed.

The latest developments underscored continuing uncertainty in talks aimed at ending the Middle East conflict, which has disrupted global energy markets for months.

Brent North Sea crude increased 1.8 percent to $95.95 per barrel, while West Texas Intermediate rose 1.7 percent to $90.17.

Across Asia, Hong Kong’s Hang Seng Index dropped over 1.5 percent, Seoul fell nearly one percent and Shanghai declined 0.3 percent. Tokyo traded flat, while Taipei recorded gains of more than one percent.

Despite the market uncertainty, investors continued to show confidence in technology stocks linked to artificial intelligence.

South Korea’s SK hynix reached a market value of $1 trillion, joining leading chipmakers including Samsung Electronics, TSMC and Micron.

Economists warned that sustained increases in oil prices could worsen inflation, prompting central banks to increase borrowing costs through higher interest rates.

Commenting on market volatility, Stephen Innes of SPI Asset Management said: “The Strait may eventually reopen fully, but until there is something more concrete than draft frameworks and political theatre, every barrel remains hostage to headline volatility, even if sub-$100.”

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