Asia-Pacific Markets Slide as Middle East Tensions Surge and Oil Prices Climb

Asia-Pacific stock markets fell on Thursday as renewed tensions in the Middle East between Iran, the United States, and Israel rattled global investors. The escalation has raised fears of prolonged conflict, keeping oil prices elevated and fueling concerns about inflation pressures across major economies.

The unrest intensified after reports that Kuwait International Airport was struck by Iran, following earlier claims from the U.S. Central Command that it had intercepted Iranian missiles and drones and carried out “self-defense strikes” in the Persian Gulf region. The growing military exchanges have added fresh uncertainty to already fragile global markets.

Israeli Prime Minister Benjamin Netanyahu, in an exclusive interview with CNBC, warned that both Israel and the United States remain prepared to take further military action if necessary. “Israel is ready and the U.S. forces are ready,” Netanyahu said, adding that Iran was “playing with fire,” further heightening geopolitical anxieties.

The market reaction was swift across the region. Japan’s Nikkei 225, South Korea’s Kospi, Australia’s S&P/ASX 200, and Hong Kong’s Hang Seng all posted losses, reflecting a broad risk-off sentiment. Energy stocks and tech shares were among the hardest hit, with Japan’s SoftBank Group plunging sharply amid sector-wide weakness.

Oil prices briefly surged as Brent crude and West Texas Intermediate futures climbed on supply disruption fears, before easing slightly in early trading. Meanwhile, U.S. futures also pointed lower, signaling continued global caution as investors weigh the impact of rising geopolitical risk on inflation and interest rate expectations.

source: cnbc