Asian markets opened lower on Wednesday as investors reacted to a fresh escalation in the Middle East after the United States launched new strikes on Iran, raising concerns over regional stability and energy supplies.
Japan's Nikkei 225 fell 0.90%, while South Korea's Kospi edged 0.07% lower. Australia's ASX 200 declined 1.29%.
Market sentiment deteriorated after a U.S. official said American forces carried out overnight strikes on an Iranian military facility believed to pose a threat to U.S. personnel and commercial vessels operating in the Strait of Hormuz. Kuwait also activated its air defence systems after warning of missile and drone threats, while Iran's Islamic Revolutionary Guard Corps said it had targeted a U.S. air base following an American strike near Bandar Abbas airport.
The developments marked another setback for efforts to stabilise the region. The U.S. Treasury's Office of Foreign Assets Control also revoked a licence that had temporarily permitted transactions involving Iranian crude oil, replacing it with a new authorisation requiring the wind-down of activities previously allowed under the June 21 waiver. The revised licence took effect on July 7.
Iran criticised Washington's decision, with Deputy Foreign Minister Kazem Gharibabadi saying the move breached the Islamabad Memorandum of Understanding. He also accused the United States of violating the agreement through its military operations and warned that Tehran would respond to protect its national interests and security.
The U.S. Central Command said its forces had launched a series of strikes against Iran after Tehran attacked three commercial vessels transiting the Strait of Hormuz. It described Iran's actions as a violation of the ceasefire and said the operation was intended to impose "heavy costs" for attacks on civilian shipping.
Oil prices climbed as traders assessed the potential impact of the renewed conflict on global supplies. Brent crude for September delivery rose 2.75% to $76.18 a barrel, while West Texas Intermediate for August gained 2.87% to $72.46 a barrel.
The latest flare-up has renewed concerns over the Strait of Hormuz, a critical shipping route for global crude exports, with investors closely watching whether further military action could disrupt energy flows and increase volatility across financial markets.
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