Asian share markets slipped on Thursday, while oil prices climbed back near $100 per barrel as hopes for easing tensions in the Iran conflict remained unclear.
U.S. futures dropped by 0.5%.
Japan’s Nikkei 225 fell 0.3% to 53,603.65, while South Korea’s Kospi saw a sharper decline of 3.2% to 5,460.46.
In Hong Kong, the Hang Seng index dropped 1.9% to 24,856.43, and China’s Shanghai Composite lost 1.1% to 3,889.08.
Australia’s S&P/ASX 200 slipped slightly by 0.1%, and Taiwan’s Taiex was down 0.3%.
Oil prices increased again on Thursday. Brent crude, the global benchmark, rose 3.3% to $100.41 per barrel after falling below $95 the previous day. U.S. crude also climbed 3.8% to $93.74 per barrel.
The rise in oil prices followed Iran’s rejection of a U.S.-proposed ceasefire plan on Wednesday. The proposal, put forward by the administration of President Donald Trump, included 15 points aimed at easing tensions. Trump also delayed his earlier deadline to take strong action against Iran’s power facilities in an effort to push Tehran to reopen the Strait of Hormuz.
Meanwhile, Iran carried out further attacks on Israel and Gulf Arab nations, while Israel launched airstrikes on Tehran. The U.S. is also preparing to send additional troops to the region.
The Strait of Hormuz — a key route between Iran and Oman through which about one-fifth of the world’s oil supply passes — has remained mostly closed since the conflict began. As a result, oil prices have been volatile, rising roughly 40% over the past four weeks.
On Wednesday, U.S. stock markets ended higher. The S&P 500 rose 0.5% to 6,591.90, the Dow Jones Industrial Average gained 0.7% to 46,429.49, and the Nasdaq composite increased 0.8% to 21,929.83.
Shares of Arm Holdings surged 16.4% in the U.S. after the British company announced plans to produce and sell its own chips, a move expected to boost future earnings.
Meanwhile, shares of Swiss sportswear brand On Holding dropped 11.2% after its CEO Martin Hoffmann announced he would step down. The company has appointed its two co-founders as co-CEOs.
In early Thursday trading, gold and silver prices declined. Gold fell 2.7% to $4,428.80 per ounce, while silver dropped 5.2% to $68.88 per ounce.
The U.S. dollar edged up slightly to 159.49 Japanese yen from 159.47 yen, while the euro remained unchanged at $1.1559.