HONG KONG (AP) — Stock markets across Asia declined Friday, mirroring overnight losses on Wall Street, as crude oil prices stayed close to $100 per barrel amid continuing concerns about Iran’s ongoing conflict and potential disruptions to global energy supplies.
Japan’s Nikkei 225 dropped 1.1% to close at 53,867.74, with technology stocks experiencing some of the steepest declines. SoftBank Group shares tumbled 4.5% during trading.
South Korea’s Kospi index decreased 1.3% to finish at 5,511.83.
Hong Kong’s Hang Seng declined 0.1% to 25,680.65, while mainland China’s Shanghai Composite managed a slight 0.1% gain to 4,131.44.
Australia’s S&P/ASX 200 posted a modest 0.1% increase to 8,639.60, while Taiwan’s Taiex dropped 0.7%.
U.S. futures showed a 0.4% advance.
Energy prices remained elevated, with Brent crude, the global benchmark, rising 0.6% to $97.22 per barrel. The international standard crossed above $100 on Thursday, after spiking near $120 earlier this week. U.S. benchmark crude slipped 0.2% to $95.22 per barrel.
Iran’s newly appointed Supreme Leader Ayatollah Mojtaba Khamenei made his inaugural public remarks Thursday, declaring that Iran would persist in its military campaign and continue utilizing the Strait of Hormuz as a strategic weapon against the United States and Israel. The vital shipping channel for oil and gas has been effectively blocked, causing major disruptions to maritime commerce.
Approximately 20% of global oil supplies pass through this strategic waterway, and attacks on vessels in and near the strait have already intensified fears “over the scale of supply disruption and persistent shipping bottlenecks,” according to commentary from Mizuho Bank analysts.
The Iranian leader’s statements followed President Donald Trump’s assessment that the conflict was “very complete,” raising questions about the duration of the current tensions.
Energy markets have experienced significant volatility since the Iran conflict started, with Brent crude climbing near $120 this week to reach its highest point since 2022. Despite the International Energy Agency’s Wednesday announcement that member nations would release a record 400 million barrels from emergency stockpiles, some economists doubt this measure will calm market fears.
Worldwide inflation is expected to intensify as energy costs surge, with higher fuel expenses already beginning to impact consumers across the globe. Increased energy prices could also drive up costs for artificial intelligence and semiconductor development and manufacturing, according to some analysts.
U.S. markets posted losses Thursday after experiencing significant fluctuations throughout the month. The S&P 500 fell 1.5% to 6,672.62, while the Dow Jones Industrial Average dropped 1.6% to 46,677.85, and the Nasdaq composite declined 1.8% to 22,311.98.
Companies with high fuel dependency experienced larger declines. Carnival, the cruise line operator, dropped 7.9%, while United Airlines fell 4.6%.
In Friday’s early currency trading, the U.S. dollar strengthened to 159.35 Japanese yen from 159.34 yen. The euro remained virtually flat at $1.1511.
