Asian Stocks Slide 1.5% as Renewed US-Iran Fighting Drives Risk-Off Trade
Updated
Updated · Reuters · Jun 4
Asian Stocks Slide 1.5% as Renewed US-Iran Fighting Drives Risk-Off Trade
3 articles · Updated · Reuters · Jun 4
Summary
MSCI’s Asia-Pacific index outside Japan fell 1.5%, with Japan’s Nikkei down 1.9% and South Korea’s market reopening as much as 2.6% lower after U.S.-Iran hostilities flared again.
Wall Street’s 0.7% overnight drop and a roughly 2% jump in oil reinforced the risk-off mood, outweighing stronger-than-expected U.S. services data as traders focused on war-driven supply and inflation risks.
Brent crude then eased 1.3% to $96.59 after Israel and Lebanon agreed to a ceasefire, though the deal depends on Hezbollah halting fire and withdrawing operatives from southern Lebanon.
Safe-haven moves spread across assets: gold rose 0.9% to $4,473.61, the yen strengthened to 159.88 per dollar, and bitcoin slid 4% to a four-month low of $62,321.87.
The broader backdrop remains unstable, with the Republican-led U.S. House passing a largely symbolic war-powers measure to curb President Donald Trump’s conflict with Iran.
With the Strait of Hormuz closed, what is the global economy's plan B for avoiding a catastrophic energy crisis?
As the Iran war's costs skyrocket, what achievable strategic victory is the U.S. actually pursuing in the region?
Is Iran's new leadership using war to consolidate power, or is the conflict exposing its profound internal weakness?
Oil Prices Spike to $95 as U.S.-Iran Standoff Disrupts Strait of Hormuz and Global Markets
Overview
Amid escalating U.S.-Iran tensions and stalled peace talks in June 2026, global markets are facing heightened geopolitical uncertainty. President Trump's dismissal of negotiation concerns and Iran's wavering commitment have fueled fears of disruptions in the Strait of Hormuz, causing oil prices to surge. This instability has rippled through energy markets and global equities, with technology and energy sectors showing resilience while others falter. The situation highlights how political events can quickly impact market sentiment and commodity prices, underscoring the interconnectedness of diplomacy, energy security, and financial stability in today's volatile environment.