Asian Stocks Fall, Oil Rises on US-Iran Ceasefire Strain

Asian stocks declined and oil prices climbed on Friday as missile and drone attacks strained a fragile ceasefire between the United States and Iran, leading to U.S. retaliatory strikes on Iranian military facilities.

The attacks targeted U.S. Navy ships in the Strait of Hormuz, according to the U.S. Central Command, which reported intercepting the unprovoked launches with no vessels struck. The United Arab Emirates, a U.S. ally, stated its air defenses were actively engaging incoming missiles and drones. President Donald Trump told reporters the ceasefire remained intact despite the escalation. Negotiations to end the war, which began in late February, showed limited progress, with Tehran announcing Thursday it was still reviewing the latest U.S. proposals.

Investors monitored the developments closely amid concerns over the Strait of Hormuz, a vital oil transit route that remains largely closed, alongside a continuing U.S. naval blockade of Iranian ports. Analysts expect oil and fuel prices to stay elevated until these restrictions ease.

In Asia, Tokyo's Nikkei 225 index fell 1.1 percent to 62,174.12, retreating from a record close of 62,833.84 the previous day when it briefly...