Asian and Pacific markets moved lower on Thursday, following the negative sentiment from Wall Street, as escalating tensions between Iran and the United States kept oil prices elevated, fueling concerns over energy costs and inflation. However, following a ceasefire agreement between Israel and Lebanon, prices came under pressure and eased slightly.

Kuwait International Airport was struck by Iran in the early hours of Wednesday, one day after the U.S. Central Command (CENTCOM) announced it had intercepted multiple Iranian ballistic missiles and drones, while also carrying out “defensive strikes” on Qeshm Island in the Persian Gulf. According to the U.S. military, these actions were taken in response to attempted attacks from Tehran.

At the same time, Israeli Prime Minister Benjamin Netanyahu stated in an interview with CNBC that both Israel and the United States are prepared to strike Iran again if deemed necessary.

“Israel is ready, and American forces are ready. Iran should take that into account. I believe it does, but it is playing with fire,” he said.

These developments weighed on investor sentiment across Asia. Japan’s Nikkei 225 fell 1.77% earlier in the session, following a record high reached in the previous trading day, while the broader Topix index lost 1.33%.

In South Korea, the Kospi declined 1.24%, although the small-cap Kosdaq index gained 2.61% as trading resumed after a public holiday.

Australia’s S&P/ASX 200 dropped 1.30%, while China’s CSI 300 fell 0.58%. Hong Kong’s Hang Seng recorded losses of 1.49%.

In India, the Nifty 50 declined 0.30% and the Sensex slipped 0.33%.

SoftBank Group shares came under significant pressure, falling more than 11% earlier in the session after the company announced the sale of a 3.25% stake in Indian eyewear company Lenskart Solutions through a block trade.

In the energy market, U.S. crude oil futures gained more than 2% on Wednesday, closing at $96.02 per barrel, while Brent crude rose nearly 2% to settle at $97.81 per barrel.

However, following the ceasefire agreement between Israel and Lebanon, oil prices came under pressure during Asian trading. The development could pave the way for a broader agreement between the United States and Iran, potentially leading to the reopening of the Strait of Hormuz and providing relief to an oil market that remains exceptionally tight.

Earlier in the day, Brent crude was down 1.24% at $96.60 per barrel, while West Texas Intermediate (WTI) crude fell 1.10% to $94.96 per barrel.

The pullback follows a strong rally earlier in the week, when both benchmark contracts gained more than 5% as hopes for an immediate peace agreement faded and military operations resumed, intensifying fears of disruptions to global oil supplies.

Wall Street futures remained under pressure. S&P 500 futures were down 0.5%, while Nasdaq 100 futures lost 0.6%. In contrast, Dow Jones futures edged slightly higher.

In the previous session, the Dow Jones Industrial Average fell 620.72 points, or 1.21%, to close at 50,687.07. The S&P 500 dropped 0.74% to 7,553.68, while the technology-heavy Nasdaq Composite declined 0.89% to finish at 26,853.98.

Source: newmoney.gr