Asian stock markets retreated Friday as investors anxiously awaited news on whether a fragile ceasefire in the Iran war would be extended beyond next week, while warnings of a looming jet fuel crisis in Europe underscored the human and economic toll of the conflict. Oil prices fell despite the Strait of Hormuz remaining largely closed and a U.S. sea blockade on Iranian ports continuing to disrupt global energy supplies.
Tokyo's Nikkei 225 fell 1% to 58,930.87 after reaching an all-time high on Thursday. South Korea's Kospi was 0.6% lower at 6,191.19. Hong Kong's Hang Seng dropped 1% to 26,126.86, while the Shanghai Composite index edged down 0.1% to 4,051.45. Australia's S&P/ASX 200 lost 0.3%, while Taiwan's Taiex traded 0.5% lower.
Ceasefire Extension Uncertain
U.S. President Donald Trump suggested Thursday that he's open to extending the two-week ceasefire in the Iran war, and Iran's U.N. envoy said Tehran remained "cautiously optimistic" over negotiations with the U.S. As optimism over an extended ceasefire grew, oil prices fell early Friday after climbing a day earlier. Brent crude, the international standard, was 1.1% lower at $98.31 per barrel. It had surged roughly 40% since the beginning of the Iran war in late February. Benchmark U.S. crude was down 1.4% to $89.90 a barrel.
Europe Faces Fuel Supply Crisis
Global energy shocks are growing over impacts of the Iran war, with the Strait of Hormuz remaining largely closed while the U.S. imposed a sea blockade on Iranian ports. The head of the International Energy Agency told The Associated Press on Thursday that Europe has "maybe six weeks or so" of jet fuel supplies remaining and warned of flight cancellations "soon." The warning highlights the vulnerability of essential transportation infrastructure and the potential for widespread disruption to travel and commerce that would affect millions of ordinary citizens.
Wall Street Hits Records Despite Global Tensions
On Thursday, Wall Street set another record with the benchmark S&P 500 closing 0.3% higher at 7,041.28, just a day after it eclipsed its previous all-time high in January. The Dow Jones Industrial Average rose 0.2% to 48,578.72, and the tech-focused Nasdaq composite added 0.4% to 24,102.70. Shares of PepsiCo gained 2.3% following its announcement of better-than-expected quarterly results. U.S. logistics company J.B. Hunt Transport Services was 6.3% higher also on stronger-than-expected results.
In other dealings, gold and silver prices were up. Gold's price was 0.1% higher at $4,814.60 an ounce, while silver prices gained 0.4% to $79.04 per ounce. The U.S. dollar rose to 159.43 Japanese yen from 159.17 yen. The euro was trading at $1.1778, down from $1.1781.
U.S. futures edged up modestly Friday, suggesting cautious optimism among American investors even as Asian markets pulled back ahead of the weekend.
Why This Matters:
The market volatility and energy crisis underscore how military conflicts disproportionately affect ordinary people far from the battlefield. Europe's dwindling jet fuel supplies threaten to ground flights and disrupt the travel plans and livelihoods of millions of workers and families who depend on functioning air transport. The 40% surge in oil prices since late February represents a massive transfer of wealth from consumers to energy producers, hitting working families hardest through higher costs for heating, transportation, and goods. While Wall Street continues setting records, the divergence between financial markets and the real economy highlights persistent inequality—investors benefit from market rallies even as global supply chain disruptions and energy shocks threaten jobs and essential services. The urgent need for diplomatic resolution and international cooperation to extend the ceasefire reflects the imperative of multilateral institutions to prevent humanitarian and economic catastrophe.