Escalating tensions between the US and Iran have heightened market fears that conflict could fuel inflation, leading to a surge in investor risk aversion and a tense market mood.
In an exclusive interview with CNBC, Israeli Prime Minister Benjamin Netanyahu stated that both Israel and the United States are prepared to strike Iran again if necessary.
Major Asia-Pacific stock indices closed broadly lower on Thursday, weighed down by overnight declines on Wall Street and further pressured by rising oil prices and growing concerns over energy costs and inflation stemming from US-Iran geopolitical conflict.
The US Central Command previously reported intercepting multiple Iranian ballistic missiles and drones and conducting defensive strikes on Qeshm Island in the Persian Gulf in response to an attempted attack by Iran. In the early hours of Wednesday, just a day after the US action, Kuwait International Airport was targeted by an Iranian attack.
In his exclusive CNBC interview, Israeli Prime Minister Netanyahu revealed that Israeli and US forces are on standby and ready to strike Iran again if needed.
"Israel is ready. The American military is ready as well. Iran should understand the situation. They know it, but they are playing with fire," Netanyahu said.
Key Asia-Pacific Market Closes
S&P/ASX 200 Index (.AXJO): 8,686.10 points, down 99.60 points or 1.13%.
Hang Seng Index (.HSI): 25,253.40 points, down 379.81 points or 1.48%.
KOSPI (.KS11): 8,639.41 points, down 162.08 points or 1.84%.
Nikkei 225 (.N225): 67,470.69 points, down 931.44 points or 1.36%.
NIFTY 50 (.NSEI): 23,441.75 points, up 36.15 points or 0.15%.
Shanghai Composite Index (.SSEC): 4,057.781 points, down 26.193 points or 0.6%.
In international oil markets, NYMEX WTI crude futures rose over 2% on Wednesday to settle at $96.02 per barrel, while the Brent crude benchmark contract gained nearly 2% to close at $97.81 per barrel. Crude futures prices retreated slightly by about 0.8% on Thursday.
In South Korea, the KOSPI closed sharply down 1.84% at 8,639.41 points. The small-cap KOSDAQ index, resuming trade after a holiday, bucked the trend to rise 2.31%, closing at 1,049.73 points.
In Japan, the Nikkei 225 pulled back 1.36% after hitting a record high in the previous session. The TOPIX index fell 1.11% to 3,951.85 points. Shares of SoftBank Group Corp. tumbled over 10%, dragged down by a broad sell-off in the Asia-Pacific technology sector.
In Australia, the S&P/ASX 200 closed down 1.88% at 8,686.10 points.
In China, the CSI 300 Index fell 0.69% to 4,904.75 points. Hong Kong's Hang Seng Index plunged in the final hour of afternoon trading, closing down 1.31% for the day.
In India, the NIFTY 50 closed slightly in positive territory, while the BSE SENSEX ended essentially flat.
For ICE Brent Crude Oil (August 2026 contract, delayed data, 10:13 British Summer Time): Price quoted at $96.26, down $1.55 or 1.58%.
US Stock Futures and Wednesday's Market Close
US stock index futures before the market open: S&P 500 futures down 0.5%, Nasdaq 100 futures down 0.6%, while Dow Jones Industrial Average futures were slightly higher.
In Wednesday's US cash market session, the Dow Jones Industrial Average fell 620.72 points, or 1.21%, to close at 50,687.07 points. The S&P 500 Index dropped 0.74% to finish at 7,553.68 points. The tech-heavy Nasdaq Composite Index declined 0.9%, closing at 26,853.98 points.
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