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 were set to open 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.
The West Texas Intermediate futures for June was 2.35% higher at $97.04 per barrel as of 7:37 p.m. ET. Brent crude futures for July last traded at $100.06 per barrel.
Japan’s Nikkei 225 was poised to decline after hitting a record high on Thursday, with the Chicago futures contract at 62,290 and its Osaka counterpart last trading at 62,140, compared with the index’s previous close of 62,833.84.
Hong Kong Hang Seng index futures were at 26,285, lower than the index’s last close of 26,626.28.
In Australia, futures last traded at 8,746, while the S&P/ASX 200‘s closed at 8,878.10.
