Asia markets under pressure oil spikes sharply

April 30, 2026 (MLN): Asian markets traded mostly lower on Thursday, mirroring weakness in U.S. markets, as crude oil prices surged to multi-year highs amid escalating geopolitical tensions in the Middle East and steady interest rates from the Federal Reserve.

Investor sentiment turned cautious after a report indicated that the U.S. military, under United States Central Command, is preparing to brief Donald Trump on potential strategic options involving Iran.

The development heightened fears of supply disruptions, particularly as tensions persist around the Strait of Hormuz, a critical global oil transit route.

Crude markets reacted sharply to the geopolitical uncertainty. International benchmark Brent crude futures surged more than 5% to $124.5 per barrel, reaching their highest level since mid-2022.

Meanwhile, U.S. benchmark West Texas Intermediate climbed over 2% to $109.41 per barrel. The rally shows concerns that ongoing conflict in the region could further constrain global energy supplies.

Regional equity markets showed mixed but mostly negative performance. In Australia, the S&P/ASX 200 declined 0.43%. Japanese markets resumed trading after a holiday on a weak note, with the Nikkei 225 falling 0.91% and the TOPIX dropping 1.48%, according to CNBC.

In South Korea, the KOSPI edged up 0.36%, while the small-cap KOSDAQ slipped 0.25%. Hong Kong’s Hang Seng Index lost 0.36%, whereas mainland China’s CSI 300 posted a modest gain of 0.21%.

U.S. stock futures pointed to a mixed open. Futures linked to the S&P 500 rose 0.3%, while Nasdaq 100 futures gained 0.5%. In contrast, Dow Jones Industrial Average futures fell by 128 points, or 0.2%.

Overnight on Wall Street, markets closed with a negative bias. The Dow Jones Industrial Average dropped 280.12 points, or 0.57%, marking its fifth consecutive day of losses and settling at 48,861.81.

The S&P 500 edged down 0.04% to 7,135.95, while the tech-heavy Nasdaq Composite managed a slight gain of 0.04% to close at 24,673.24.

Market participants remain focused on geopolitical developments and energy price volatility, both of which are expected to drive global risk sentiment in the near term.

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