By Ronnie Harui
Asian equities fell early Friday after the U.S. and Iran exchanged fire in the Persian Gulf, undermining appetite for risky assets.
Iran launched missiles, drones and small-boat attacks at U.S. warships near the Strait of Hormuz, while the U.S. responded by intercepting the threats and striking Iranian military sites responsible for the attacks, The Wall Street Journal reported, citing a statement from U.S. Central Command.
American military strikes targeted Iranian drone launch sites and coastal defense cruise missile sites and radars, U.S. officials said. Iran had launched its attacks from those locations and was preparing to do so again, according to one of the officials.
There's "a more risk-off mood, with sporadic media headlines leading to investor doubts about a solution" to the U.S.-Iran conflict, said Gavin Friend, senior markets strategist at National Australia Bank, in commentary.
Stock markets across Asia declined, with Japan's Nikkei Stock Average edging 0.2% lower, South Korea's Kospi dropping 0.7%, and Singapore's FTSE Straits Times Index losing 0.3%.
Prospects that the U.S.-Iran exchange of attacks could keep supply disruptions through the Strait of Hormuz elevated helped to boost crude oil futures on Friday. The strait is a key waterway through which one-fifth of the world's oil is typically transported.
Front-month West Texas Intermediate crude oil futures climbed 1.3% to $96.08 per barrel and front-month Brent crude oil futures rose 1.6% to $101.65 a barrel, ICE data showed.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
May 07, 2026 21:29 ET (01:29 GMT)
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