SINGAPORE: Asian share markets traded mixed on Friday, while oil prices extended gains amid ongoing tensions between the United States and Iran. Investors remained cautious as ceasefire hopes weakened and peace talks stalled.
The MSCI index of Asia-Pacific shares outside Japan rose 0.3% and looked set to end the week with a 0.8% gain. However, performance across the region remained uneven. Japan’s Nikkei index gained 0.45%, while markets in South Korea, China, and Hong Kong closed lower.
At the same time, global markets showed a mixed trend. US futures for the Nasdaq rose 0.6%, and S&P 500 futures added 0.1%. In contrast, European futures slipped, with EUROSTOXX 50 falling 0.65% and FTSE futures dropping 0.9%.
Investors reacted to rising geopolitical uncertainty. They worried about the fragile ceasefire in the Middle East. They also tracked stalled US-Iran peace talks. As a result, market sentiment stayed weak and uncertain.
A market analyst noted that the situation remains unstable. He said that ceasefire conditions do not guarantee peace. Therefore, traders continue to expect sudden shifts in sentiment and prices.
Tensions increased further after Iran showed military activity near the Strait of Hormuz. The move raised concerns about shipping safety in the key oil route. In response, US President Donald Trump said he ordered the Navy to take strong action against Iranian vessels and support demining operations.
He also announced an extension of the ceasefire timeline to allow more diplomatic talks. However, investors remained unconvinced about long-term stability.
Analysts warned that the conflict is unlikely to ease quickly. They said oil prices and market volatility may continue to swing with each new development. Many traders are now focusing on short-term opportunities rather than long-term stability.
Oil markets reacted strongly to the uncertainty. Prices moved higher as supply risks increased. Brent crude futures rose more than 1% to $106.21 per barrel. Meanwhile, US crude gained 1% to $96.77 per barrel.
The rise in oil prices came as tensions in the Strait of Hormuz persisted. This route is critical for global energy supply. Any disruption there quickly impacts global markets.
In another development, markets largely ignored news of a temporary ceasefire extension between Lebanon and Israel. The agreement followed a high-level meeting at the White House. However, investors focused more on broader regional risks.
Overall, markets across Asia and beyond reflected uncertainty. Equity markets moved in different directions, while oil prices climbed on supply fears. Investors now wait for clearer signals from US-Iran talks and Middle East developments before making major moves.
