BY COMFORT OGBONNA
Stock markets across Asia delivered mixed results on Friday as investors reacted cautiously to the ongoing conflict involving Iran and Israel, while oil prices retreated slightly after surging to their highest levels since the summer of 2024. The global financial markets have been volatile throughout the week as uncertainty surrounding the conflict continues to influence energy prices and investor sentiment.
U.S. stock futures moved slightly higher ahead of trading on Friday even as the war entered its seventh day. Airstrikes continued across parts of the Middle East, including attacks affecting the capitals of Iran and Lebanon. Futures tied to the S&P 500 rose about 0.2%, while those linked to the Dow Jones Industrial Average gained 0.3%, suggesting a modest rebound following the previous session’s decline on Wall Street.
In Asia, trading was uneven across major markets. KOSPI in South Korea edged up less than 0.1% to 5,584.87. The index has experienced a dramatic week marked by sharp swings, including a record 12% plunge on Wednesday followed by a strong rebound of nearly 10% on Thursday. Prior to the conflict, the benchmark had climbed above 6,000, but geopolitical tensions quickly rattled investor confidence.
Japan’s Nikkei 225 posted gains of 0.6% to reach 55,620.84 as investors showed renewed interest in technology and export-oriented stocks. Meanwhile, in Hong Kong the Hang Seng Index jumped 1.6% to 25,732.75, reflecting optimism among investors after earlier declines during the week.
Mainland China’s Shanghai Composite Index also moved higher, rising 0.4% to 4,124.19. However, other regional markets struggled. Australia’s S&P/ASX 200 fell 1% to 8,851.00 as energy and financial stocks weighed on the index. Taiwan’s Taiex slipped 0.2%, while India’s BSE Sensex declined 0.8% amid concerns over rising oil prices and global economic uncertainty.
Oil markets showed a slight cooling on Friday after days of sharp increases fueled by fears that the conflict could disrupt global supply routes. Benchmark West Texas Intermediate crude oil dropped 0.8% in early trading to $80.38 per barrel after reaching $81.01 on Thursday, its highest level in months.
Meanwhile, Brent crude, the international oil benchmark, slipped 0.6% to $84.79 per barrel after touching $85.41 a day earlier. Despite the modest pullback, analysts say oil prices remain elevated due to ongoing concerns that the conflict could escalate and threaten critical energy transport routes.
Energy analysts have warned that if oil prices climb toward $100 per barrel and remain there for an extended period, it could significantly slow global economic growth by increasing transportation and manufacturing costs worldwide. Markets have been particularly sensitive to any developments affecting oil supply routes.
One key area of concern is the Strait of Hormuz, a vital shipping corridor between Iran and Oman through which roughly one-fifth of the world’s seaborne oil supply passes. Any disruption to tanker traffic through the narrow waterway could quickly drive energy prices higher.
Analysts noted that Friday’s slight easing in oil prices followed a temporary 30-day waiver from the United States allowing Indian refiners to continue purchasing Russian oil. The move is seen as part of broader efforts to stabilize global energy supplies and limit excessive price spikes.
On Wall Street, major indexes ended Thursday’s trading session lower as investors reacted to rising oil prices and geopolitical risks. The S&P 500 fell 0.6% to close at 6,830.71, while the Dow Jones Industrial Average dropped 1.6% to 47,954.74. The Nasdaq Composite declined 0.3% to finish at 22,748.99.
Despite the broader market decline, shares of Broadcom surged 4.8% after the semiconductor company reported quarterly profit and revenue that exceeded analysts’ expectations. The strong performance from the chipmaker helped limit deeper losses across the technology sector.
Airline stocks were among the hardest hit on Wall Street as the conflict pushed fuel costs higher and disrupted travel across the Middle East. Shares of American Airlines dropped 5.4%, United Airlines fell 5%, and Delta Air Lines declined 3.9%. Many flights in the region have been canceled or rerouted, leaving hundreds of thousands of passengers stranded.
In currency markets, the U.S. dollar strengthened slightly against the Japanese currency, rising to 157.63 yen from 157.56 yen. The euro held steady at $1.1611.
Precious metals also moved higher as investors sought safer assets amid the geopolitical uncertainty. The price of gold rose 0.9%, while silver climbed about 3%.
With the conflict continuing and energy markets remaining volatile, analysts say global financial markets could see further swings in the coming days as investors closely monitor developments in the Middle East and their potential impact on global economic stability.
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