Asian stocks fall and oil prices climb after attacks imperil the ceasefire with Iran
May 7, 2026, 9:53 PM | Updated: May 8, 2026, 5:20 am
A dealer watches computer monitors at a dealing room of Hana Bank in Seoul, South Korea, Friday, May 8, 2026. (AP Photo/Lee Jin-man)
Credit: ASSOCIATED PRESS
(AP Photo/Lee Jin-man)
HONG KONG (AP) — Asian stocks retreated and oil prices rose on Friday as the fragile ceasefire with Iran was strained by missile and drone attacks that prompted U.S. retaliatory strikes on Iranian military facilities.
U.S. futures rose despite the latest flaring in the conflict.
Investors are closely watching the war situation as negotiations between the U.S. and Iran to end the war make limited progress. Tehran said Thursday that it was still examining the latest proposals from the U.S. for ending the war.
Tokyo’s Nikkei 225 fell 1.1% to 62,174.12 after closing the day before at a record high of 62,833.84. It also briefly crossed the 63,000 mark for the first time during Thursday trading. SoftBank Group, one of Japan’s largest stocks, lost more than 5%.
Elsewhere in Asia, South Korea’s Kospi fell 1.1% to 7,409.63. Hong Kong’s Hang Seng dropped 1.3% to 26,289.50. The Shanghai Composite index shed 0.3% to 4,167.56. Australia’s S&P/ASX 200 lost 1.7% to 8,729.40.
Taiwan’s Taiex was 0.5% lower. India’s Sensex declined 0.6%.
Oil prices traded higher early Friday after falling the day before. Brent crude, the international standard, climbed 1.1% to $101.13 per barrel. Brent crude was roughly $70 a barrel before the Iran war began in late February.
Benchmark U.S. crude rose 0.7% to $95.47 a barrel.
The U.S. Central Command said Thursday that it intercepted “unprovoked” Iranian attacks on Navy ships in the Strait of Hormuz, although no vessels were struck. But U.S. President Donald Trump told reporters the ceasefire with Iran was still intact.
The United Arab Emirates, a U.S. ally, said early Friday that its air defenses were “actively engaging” with a missile and drone attack.
Oil and fuel prices are expected to remain elevated for as long as the Strait of Hormuz, a key waterway for oil and gas transit, remains largely closed and a U.S. sea blockade on Iranian ports continues.
On Thursday, U.S. stocks pulled back from records. The benchmark S&P 500 fell 0.4% to 7,337.11. The Dow Jones Industrial Average slipped 0.6% to 49,596.97, while the technology-heavy Nasdaq composite dropped 0.1% to 25,806.20.
Shares of Whirlpool sank 11.9% following weaker-than-expected results, and Shack Shack tumbled 28.3% likewise. McDonald’s fell 0.1% after recording latest quarterly revenue that was better than what analysts had expected.
The U.S. dollar fell to 156.87 Japanese yen from 156.93 yen. The euro was trading at $1.1729, up from $1.1726.
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AP Business Writer Stan Choe contributed to this report.
