Asian shares steady, oil prices rise as US strikes Iran

Asian stocks were little changed while oil prices gained as investors assessed the implications of renewed geopolitical tensions in West Asia.

Brent increased 2.8% to top $76 a barrel as the US launched renewed airstrikes in Iran and revoked a waiver which permitted it to sell oil globally post a series of attacks on vessels in the Strait of Hormuz.

South Korea's Kospi index was up 0.9%, while Japan's Nikkei index was flat but sharply off day's lows. The MSCI Asia Pacific index was steady after falling nearly 1% during open. S&P 500 futures were up0.1% while contracts for the Nasdaq 100 were up 0.3%.

The moves came after US benchmarks fell on Tuesday, with a gauge of chip stocks dropping more than 4%. The Nasdaq 100 slid 1.8%.

The latest escalation in geopolitical tensions risks triggering renewed disruption in energy markets and undermining the interim US-Iran peace deal reached last month. It adds another layer of uncertainty in equity markets, where investors have already grappled with sharp volatility in recent weeks amid concern the artificial intelligence-fueled rally has run too far, too fast.

Brent oil prices had touched a peak near $125 a barrel in late April, two months after the US and Israel began the military campaign against Iran. Prices returned toward pre-conflict levels on growing signs of a recovery in supplies after the peace deal.

American forces concentrated on Iranian air defenses and weapons launchers in the attacks, according to a US official. Iran’s Mehr News Agency reported explosions were heard near the strait.

Elsewhere in markets, the Bloomberg Dollar Spot Index rose 0.1%. Treasuries were steady while yields on Australian and Japanese 10-year bonds climbed. Gold rose above $4,100 an ounce.

With inputs from Bloomberg