Asia-Pacific markets traded mostly lower on Friday as investors reacted to surging oil prices and escalating geopolitical tensions in the Middle East, raising concerns that a prolonged conflict involving Iran could disrupt global energy supplies and slow economic growth.
The cautious mood followed renewed threats from Iran’s newly appointed Supreme Leader, Mojtaba Khamenei, who said in a speech late Thursday that the Strait of Hormuz should remain closed.
The narrow waterway is a critical route for global oil shipments, and any sustained disruption there has the potential to tighten supply and push energy prices higher.
By 11:35 am AEDT (12:35 am GMT), Australia’s S&P/ASX 200 was trading flat, Japan’s Nikkei 225 declined 1.3%, while South Korea’s KOSPI 200 dropped 1.9%.
The weakness in Asia followed a sharp decline on Wall Street overnight, where all three major United States benchmarks closed at their lowest levels of 2026 so far.
The Dow Jones Industrial Average fell 1.6%, while the S&P 500 lost 1.5%. The Nasdaq Composite dropped 1.8%.
Oil markets rallied sharply during Thursday’s session as traders priced in the risk of supply disruptions through the Strait of Hormuz.
Brent crude surged 9.2% to settle at US$100.46 per barrel, marking its first close above the $100 mark since August 2022.
Despite the geopolitical turmoil, safe-haven demand for gold weakened. Spot gold fell 1.9% to settle at US$5,079.26 per ounce.
In China, mainland equities also ended the previous session modestly lower. The Shanghai Composite Index eased 0.1% to close at 4,129.1, while the CSI 300 declined 0.4% to 4,687.6.
Elsewhere in the region, Hong Kong’s Hang Seng Index slipped 0.7% to close at 25,716.8, while India’s BSE Sensex dropped 1.1% to finish at 76,034.4.
European markets also finished lower on Thursday, as the UK’s FTSE 100 fell 0.5% to close at 10,305.2. Germany’s DAX declined 0.2% to 23,589.7, while France’s CAC 40 slipped 0.7% to end the session at 7,984.4.
