Asian stocks fall, oil gains as US strikes Iran

Published 11 June 2026 · finance

Oil climbed and stocks fell after US forces launched fresh strikes on Iran, reviving geopolitical risks at a time when markets are already grappling with

Oil climbed and stocks fell after US forces launched fresh strikes on Iran, reviving geopolitical risks at a time when markets are already grappling with a selloff in richly valued technology stocks.Brent crude rose over2% to near $95.20 a barrel after the US military launched strikes on multiple targets in Iran for a second straight day. MSCI’s gauge for Asian equities dropped 1%, setting the gauge up for a fifth loss in six days. Tech stocks remained under pressure with South Korea’s Kospi Index, a bellwether for the artificial-intelligence trade, dropping over 4%. Equity-index futures for Wall Street benchmarks also retreated after the underlying gauges both dropped during the US session. The Nasdaq 100 Index dropped 2% as traders were rattled by a renewed selloff in some of the world’s largest tech companies.Elsewhere, gold extended losses to around $4,050 an ounce on concerns elevated oil prices will lead to higher interest rates. The dollar was a touch stronger against most Group-of-10 currencies.

Treasury futures also fell as geopolitical tensions increased with Iran saying the Strait of Hormuz was closed to all types of vessels.The latest strikes threatened to inject fresh volatility into markets and tighten crude oil supplies, risking renewed inflationary pressures. Even after Wednesday’s softer-than-expected US inflation report offered a brief reprieve, traders continued to price in higher borrowing costs while a selloff in semiconductor stocks cast doubt on the sustainability of the record equity rally.“Investors remain skittish despite being thrown a lifeline by the inflation figures,” said Chris Beauchamp, chief market analyst at IG. “It is now a case of ‘once bitten, twice shy’ - no one wants to go charging in to buy the dip yet, which suggests more of a drift lower for the time being, though leaving the overall trend intact.”US Central Command said it had begun what it called the “additional self-defense strikes” at 5:15 p.m. New York time on Wednesday.The attacks, which followed strikes on Tuesday in retaliation for the downing of a US Apache helicopter, underscored President Donald Trump’s growing impatience that the two sides have so far failed to reach an agreement.They also reinforced the view that an April ceasefire has effectively collapsed, despite the absence of a return to the large-scale bombing campaign seen at the start of the conflict.“Markets retain a suspicion that this will be another brief episode of sound and fury signifying not much, so a degree of caution in positioning seems warranted,” said Sean Callow, a senior analyst at ITC Markets in Sydney.In the US, shares of chipmakers and other AI infrastructure companies, this year’s biggest winners, fell for a second day Wednesday.