Middle East Tensions Pressure Asia-Pacific Markets as Iran-U.S. Ceasefire Falters

Asia-Pacific equities are poised for a mixed start on Friday, reflecting investor anxiety over the precarious ceasefire between the United States and Iran. The truce, intended to last two weeks, follows a month of conflict that severely disrupted the Strait of Hormuz, a vital artery for global energy supplies. While Tehran agreed to reopen the waterway on the condition that attacks on the country cease, the agreement remains under significant pressure. U.S. President Donald Trump has signaled a hard line, warning Iran that it must stop charging fees to tankers for passage through the strait, suggesting that such actions could jeopardize the current pause in hostilities. The geopolitical friction is most evident in the energy markets. West Texas Intermediate (WTI) crude rose 0.62% to $98.48 per barrel, having briefly breached the $100 mark earlier in the session. Brent crude also saw gains, closing Thursday at $95.92 per barrel, an increase of over 1%. In the equity space, the impact remains fragmented. While U.S. indices closed higher—with the S&P 500 gaining 0.62% to 6,824.66 and the Dow Jones Industrial Average rising 0.58% to 48,185.80—Asian futures show a more cautious outlook. The Nikkei 225 and Hang Seng futures indicate a mixed opening as traders weigh the risk of renewed conflict against broader market momentum.