On Friday (8 May, 9:18 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited losses, pressured by renewed military exchanges between the United States and Iran, which rekindled uncertainty over the delicate ceasefire. The trading session saw equities pull back from recent record highs, with market participants closely monitoring the escalation in the Strait of Hormuz, a crucial corridor for global energy shipments.
Tensions heightened after both Washington and Tehran reported exchanging fire in the strategic waterway, each attributing responsibility for initiating the clash to the other side. Despite these developments, President Donald Trump maintained that the ceasefire was intact, characterizing the latest strikes as “just a love tap” with an ABC News reporter.
Later, Trump asserted in a Truth Social post that the U.S. military “completely destroyed” the Iranian assets involved, referencing both small naval craft and drones taken out during the incident. The president reiterated that Iran would face stronger military action if it did not commit to a new nuclear agreement.
The escalation triggered a rise in oil prices, as investors reassessed the risks to energy supply stemming from instability in the Middle East. Nevertheless, although Asian stocks stepped back from recent peaks, markets were still poised to record one of their best-performing weeks of the year. Investors appeared to weigh de-escalating efforts, in the hopes that waning tensions could limit energy price shocks and further support broader risk assets.
Japan’s NIKKEI declined by 0.80% to 62,331.42. South Korea’s KOSPI fell by 1.40% to 7,385.37, and Australia’s ASX 200 dropped by 1.61% to 8,735.50.
As for stocks in China, Shanghai’s SSEC slid by 0.15% to 4,173.63. Shenzhen’s SZI shrank by 0.23% to 15,606.10, and Hong Kong’s HSI contracted by 1.00% to 26,361.05.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) lost 0.63% to 49,596.97. NASDAQ decreased by 0.13% to 25,806.19, and S&P 500 was down 0.38% to 7,337.11. VIX slumped by 1.78% to 17.08.
As for commodities, oil prices settled lower on Thursday after reports indicated that Saudi Arabia and Kuwait had eased limitations on the U.S. military’s access to regional airspace and bases. This development permits the United States to resume military escorts for commercial shipping passing through the Strait of Hormuz as early as this week.
By the end of the session, Brent crude futures had declined by 1.2%, or $1.21, to finish at $100.06 per barrel. U.S. West Texas Intermediate crude also decreased, settling 0.28% lower, down 27 cents at $94.81. Earlier in the day, both contracts fell by up to $5 per barrel, as markets responded to indications that the U.S. and Iran might be approaching a short-term agreement aimed at de-escalating tensions.
However, crude prices rebounded on Friday as renewed clashes erupted between the two nations, undermining the fragile ceasefire and dashed expectations for the reopening of the Strait of Hormuz. This morning, Brent futures gained $1.52 or 1.52% to $101.58 per barrel, and the WTI futures surged $1.12 or 1.18% to $95.93 per barrel.
Meanwhile, gold futures grew by 0.54% to $4,736.20 per Troy ounce.
