Asian shares slip and oil pares gains on Iran war uncertainties
Asian stocks are trading lower, tracking losses on Wall Street after U.S. stocks fell from record highs
FILE - A train arrives at a Wall Street subway station in New York's Financial District on Nov. 5, 2024. (AP Photo/Peter Morgan, File)
HONG KONG (AP) — Asian stocks declined Tuesday, tracking losses on Wall Street after U.S. stocks retreated from record highs.
Oil prices fell back after rising earlier on escalating tensions in the war between the U.S. and Iran.
U.S. futures edged 0.1% higher.
Regional trading was thin, with markets in Japan, South Korea and mainland China closed for holidays.
Hong Kong’s Hang Seng fell 1.1% to 25,805.98. Australia’s S&P/ASX 200 lost 0.5% to 8,649.80, while Taiwan’s Taiex traded 0.2% lower at 40,626.22.
The fragile ceasefire between the U.S. and Iran was tested Monday after the U.S. military said it had sank six Iranian small boats targeting civilian ships, while two U.S.-flagged ships successfully passed through the Strait of Hormuz.
The key waterway for oil and gas tranport remains largely closed despite repeated demands from the U.S. for Iran to reopen the strait and as the United States imposed a sea blockade on Iranian ports. U.S. President Donald Trump's “Project Freedom” plan under which the United States would help guide stranded ships through the Strait of Hormuz began on Monday.
Brent crude, the international standard, fell $1.22 to $113.22 per barrel. It surged above $114 a barrel on Monday, gaining nearly 6%. Before the war began in late February, it was trading near $70.
Benchmark U.S. crude slipped $2.08 to $104.34 per barrel.
Talks on a permanent end to war have stalled. Tensions escalated when the United Arab Emirates, a U.S. ally, said it came under attack from Iran for the first time since the ceasefire last month.
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