Asia-Pacific markets opened lower on Wednesday as renewed tensions in the Middle East weighed on investor sentiment and pushed energy prices higher.
The United States launched a "series of powerful strikes" against Iran on Tuesday evening in retaliation for attacks on three commercial vessels travelling through the Strait of Hormuz, U.S. Central Command said.
By 11:35 am AEST (1:35 am GMT), Australia's S&P/ASX 200 was down 1.2%, Japan's Nikkei 225 declined 0.6%, and South Korea's KOSPI 200 slipped 0.6%.
Among economic data releases, South Korea recorded its largest-ever current account surplus in May, supported by strong semiconductor exports, according to Bank of Korea data.
The current account surplus reached US$38.61 billion in May, up from $28.29 billion in April and surpassing the previous record of $37.93 billion set in March.
The goods account posted a surplus of $37.86 billion as exports surged 62.9% year-on-year to $94.34 billion, while imports increased 22.2% to $56.48 billion.
Japan also recorded a current account surplus of ¥3.968 trillion (US$24.2 billion) in May, as strong semiconductor-related equipment and automobile exports pushed the trade balance into surplus.
The surplus increased 19.5% from a year earlier, with investment income from overseas securities holdings also contributing to the improvement, according to preliminary Finance Ministry data.
Japanese exports rose 14.7% to 9.36 trillion yen, while imports increased 8.1% to 9.35 trillion yen.
In U.S. markets on Tuesday, major benchmarks closed lower as investors reduced exposure to artificial intelligence-linked stocks amid rising geopolitical risks.
The Dow Jones Industrial Average fell 0.3%, the S&P 500 declined 0.5%, and the Nasdaq Composite dropped 1.2%.
In commodities, ICE Brent crude jumped 3% to settle at US$74.16 per barrel, while spot gold declined 1.4% to US$4,105.63 per ounce.
Chinese markets ended lower on Tuesday, with the Shanghai Composite Index falling 1.3% to 3,990.2 and the CSI 300 declining 1% to 4,792.3.
Hong Kong's Hang Seng Index dropped 0.5% to 23,496.9, while India's BSE Sensex eased 0.1% to 78,180.7.
European markets closed mixed, with the UK's FTSE 100 rising 0.1% to 10,665.9 after reaching an intraday record high. Germany's DAX fell 1.4% to 25,465.3, while France's CAC 40 declined 0.5% to 8,436.2.
