Asia stocks fall on U.S. Iran tensions

July 08, 2026 (MLN): Asia markets traded mostly lower on Wednesday as escalating tensions between the United States and Iran dampened investor sentiment and pushed oil prices higher ahead of the release of minutes from the U.S. Federal Reserve's latest policy meeting.

Japan's Nikkei 225 fell 0.55%, while the Topix slipped 0.7%. South Korea's Kospi lost 0.72%, and the small-cap Kosdaq dropped 1.94%. Australia's S&P/ASX 200 declined 1.36%, according to CNBC.

Hong Kong's Hang Seng Index opened 1.2% higher, bucking the regional trend, while mainland China's CSI 300 eased 0.47%.

U.S. stock futures were little changed during Asian trading, with Dow Jones Industrial Average futures slipping 29 points. Futures linked to the S&P 500 and Nasdaq 100 each edged down around 0.1%.

Market sentiment weakened after the United States launched what it described as a "series of powerful strikes" against Iran on Tuesday, in response to attacks on three commercial vessels transiting the Strait of Hormuz.

Separately, the U.S. Treasury revoked a license that had allowed Iran to sell oil globally following the attacks.

The developments drove oil prices higher. West Texas Intermediate crude for August delivery climbed 2.1% to $71.87 per barrel, while Brent crude for September delivery gained 1.9% to $75.53 per barrel during Asian trading.

Overnight on Wall Street, investors rotated out of artificial intelligence-related stocks as higher oil prices pressured broader market sentiment.

The Dow Jones Industrial Average ended more than 100 points lower after touching a fresh intraday record earlier in the session. The S&P 500 declined 0.5%, while the Nasdaq Composite fell 1.2%, led by weakness in chipmakers.

Investors are now awaiting the minutes of the Federal Open Market Committee's June meeting, scheduled for release later on Wednesday.

The minutes are expected to offer further insight into Federal Reserve Chair Kevin Warsh's first policy meeting, where officials left interest rates unchanged while indicating that further rate increases could be considered if inflation remains elevated.

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