Oil Rises After U.S. Strikes on Iranian Sites as Asian Shares Retreat

Brent crude oil rose more than 3% overnight to trade around $97 to $98 a barrel after the U.S. military carried out defensive airstrikes against Iranian military sites near the Strait of Hormuz, injecting fresh uncertainty into global energy markets.

The move marked a renewed escalation in U.S.-Iran tensions after conflicting signals about possible peace negotiations. The proximity of the strikes to the Strait of Hormuz, a critical route for global oil flows, sharpened investor concern about possible disruption to energy supplies.

The geopolitical risk spilled into Asian equity trading, where most major markets weakened as investors sought clarity on the next phase of the confrontation. Hong Kong’s Hang Seng index fell 1.9%, while South Korea’s Kospi declined 1.2%.

The combination of higher oil prices and lower regional equities reflected a more cautious tone across markets, with traders weighing the inflationary and growth implications of a prolonged Middle East shock.