Asian shares decline and oil prices up more than $1 after US strikes on Iran

May 28, 2026 - 09:47

Asian stock markets fell across the board on Thursday, while crude oil prices surged more than a dollar per barrel after the United States launched what it described as defensive strikes against Iranian forces. The move rattled investors already on edge over instability in the Middle East.

The U.S. military confirmed that Central Command forces intercepted and destroyed four Iranian one-way attack drones near the Strait of Hormuz, a vital chokepoint for global oil shipments. Officials said the drones posed an imminent threat to both commercial vessels and naval assets in the area.

The escalation sent oil prices climbing sharply, recovering from steep losses the previous day. Brent crude rose above $73 a barrel, and West Texas Intermediate also gained ground. The Strait of Hormuz handles about a fifth of the world's oil supply, so any disruption there tends to trigger immediate price spikes.

Investors shifted toward safe-haven assets like gold and government bonds, pulling money out of riskier equities. Tokyo's Nikkei 225 fell 1.4 percent, while Hong Kong's Hang Seng dropped 1.1 percent. Markets in Shanghai, Seoul, and Sydney also posted losses.

Analysts warned that further retaliation from Iran could deepen the selloff. The situation remains fluid, with traders watching for any signs of a broader conflict that might close shipping lanes or disrupt energy supplies. For now, the combination of military action and economic uncertainty is keeping global markets under pressure.