Asia-Pacific markets traded lower on Thursday, as investor optimism was dialled back a notch following accusations from Iran that the United States had breached a newly agreed ceasefire.
Iranian parliamentary speaker Mohammad Bagher Ghalibaf said Washington had violated key terms of the two-week truce, casting doubt over the durability of the agreement and prompting caution across regional markets.
The ceasefire had been announced a day earlier by U.S. President Donald Trump, more than a month into the conflict with Iran.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump said in a Truth Social post. “We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.”
The agreement was contingent on Iran reopening the strategically important Strait of Hormuz, a key global oil shipping route that had been disrupted during the conflict.
Tehran had indicated it would halt “defensive” operations if attacks ceased.
However, Ghalibaf later accused the U.S. of violating the deal, citing the denial of Iran’s right to enrich uranium, continued Israeli strikes on Lebanon, and the reported incursion of a drone into Iranian airspace.
By 11:15 am AEST (1:15 am GMT), Australia’s S&P/ASX 200 had fallen 0.2%, while Japan’s Nikkei 225 declined 0.6% and South Korea’s KOSPI 200 dropped 1.2%.
The cautious tone followed a strong rally on Wall Street overnight, where major U.S. benchmarks surged on initial optimism surrounding the ceasefire.
The Dow Jones Industrial Average climbed 2.9%, while the S&P 500 gained 2.5% and the Nasdaq Composite advanced 2.8%.
In commodities, Brent crude oil prices dropped sharply, falling 13.3% to US$94.75 per barrel as traders reacted to the prospect of easing supply disruptions.
Meanwhile, spot gold edged 0.3% higher to US$4,720.49 per ounce.
Chinese equities also posted strong gains in the previous session, with the Shanghai Composite Index rising 2.7% to 3,995.0 and the CSI 300 climbing 3.5% to 4,595.6.
Hong Kong’s Hang Seng Index jumped 3.5% to 25,893.0, while India’s BSE Sensex surged 4% to 77,562.9.
European markets also rallied strongly amid initial optimism following the ceasefire announcement. The UK’s FTSE 100 rose 2.5% to 10,608.9, Germany’s DAX gained 5.1% to 24,080.6, and France’s CAC 40 advanced 4.5% to 8,263.9.
