Offshore vessel ‘Zakher Duty’ at the Port of Fujairah, as the U.S.-Israel conflict with Iran limits marine traffic in the Strait of Hormuz, in Fujairah, United Arab Emirates, May 6, 2026.
Amr Alfiky | Reuters
Asia-Pacific markets traded lower Friday, as concerns grew over renewed hostilities between Iran and the U.S. amid a fragile ceasefire.
The U.S. and Iran traded fire in the Strait of Hormuz, with each side claiming the other initiated the attack.
Despite the escalation, President Donald Trump insisted that the ceasefire remains in effect, saying the strikes are “just a love tap” during a call with an ABC News reporter later Thursday.
Trump later claimed in a subsequent Truth Social post that the U.S. “completely destroyed” the Iranians involved in the exchange, which he said included small boats and drones that “dropped ever so beautifully down to the Ocean, very much like a butterfly dropping to its grave!”
He reiterated that Iran will face further attacks if they do not agree to a nuclear deal.
“Just like we knocked them out again today, we’ll knock them out a lot harder, and a lot more violently, in the future, if they don’t get their Deal signed, FAST!” Trump wrote.
Oil futures pared early gains. The West Texas Intermediate futures for June was 0.81% higher at $95.85 per barrel as of 11:45 p.m. ET. Brent crude futures for July gained 1.07% at $101.13 per barrel.
South Korea’s Kospi slipped 0.93% while the small-cap Kosdaq was 0.35% higher.
Japan’s Nikkei 225 slipped 0.68% amid some profit-taking after hitting a record high on Thursday. Toyota Motor fell 1.34% after it reported that fourth-quarter operating profit slumped 49%, weighed down by U.S. tariffs.
Australia’s S&P/ASX 200 extended early losses, declining 1.74%.
Mainland China’s CSI 300 index was trading 0.90% lower, while Hong Kong’s Hang Seng index dropped 1.19%.
India’s Nifty 50 declined 0.50%.
