Stocks in Japan and Australia fell, with the broader MSCI Asia Pacific index falling 0.5%. This amount has decreased by 7% since the beginning of the war. Treasuries fell and the dollar gained during the U.S. session, with the currency set for its best week since 2024. U.S. equity gauges also fell on Thursday, though they were off session lows.
The focus was mostly on oil, with West Texas Intermediate crude down 2.5% to nearly $79 on Friday. It comes after the Trump administration is weighing a range of options to address soaring oil and gasoline prices amid the war in Iran, Interior Secretary Doug Brigham said. Still, oil is on track for its biggest weekly gain since 2022.
The ongoing U.S.-Israeli attack on Iran has rattled global energy markets, sending U.S. crude to multi-year highs amid concerns that disruptions through the Strait of Hormuz could limit supplies. The conflict is already disrupting flows to key buyers, with top importer China moving to save oil, raising risks of inflation and market volatility if the war continues.
“What matters now is whether the war will last a few days, weeks or longer,” said Marco Oviedo, chief strategist at XP Investimentos. The possibility that the conflict will not last “remains a case of the foundation, and that the United States is winning the war. But Iran’s refusal to back down is a crisis of the situation.”
Iran launched a new wave of missile and drone strikes in the Gulf on Thursday evening, with attacks reported in the United Arab Emirates, Bahrain, Qatar and Kuwait. Iran’s Foreign Minister Abbas Araghchi told NBC News that his country has not asked for a ceasefire and has no intention of negotiating.
However, the United States remains impassive. Trump told Axios that he should be involved in choosing a successor, the outlet reported, citing an interview with the president.
