Asian Markets Slip as Oil Prices Surge Amid US-Iran Tensions

Jakarta, VIVA – Asian-Pacific stock markets moved lower during trading on Tuesday, 5 May 2026. The correction came amid a surge in global oil prices that remained above the US$100 per barrel level.

Market pressure emerged alongside rising geopolitical tensions between the United States (US) and Iran in the Strait of Hormuz region. This situation triggered a sharp rise in energy prices.

Geopolitical tensions heated up after the US and Iran launched new attacks in the Gulf region on Monday local time, 4 May 2026. Both countries were reported to be competing for control over the Strait of Hormuz through retaliatory maritime blockade actions.

This move occurred shortly after US President Donald Trump initiated new efforts to assist tanker ships and other vessels in crossing the strategic energy trade route. Global shipping company Maersk revealed that the US-flagged vehicle carrier Alliance Fairfax successfully exited the Gulf through the Strait of Hormuz under US military escort.

Market analyst from IG, Tony Sycamore, assessed that prior market expectations had been too optimistic regarding developments in the region. According to him, markets had placed too much hope on the implementation of Trump’s initiated ‘Freedom Project’.

“However, as can be seen, Iran has not responded to that approach… This shows that the deadlock is still ongoing and represents a very fragile start for the markets,” Sycamore said.

This situation has made investors tend to be cautious, particularly towards risk assets, amid increasing global uncertainty due to geopolitical conflict and surging energy prices.

Market participants also monitored the movement of the Japanese yen, which had sharply strengthened in the previous session. The surge sparked speculation of potential further intervention from Japanese authorities to stabilise their currency.

Citing Reuters, Singapore’s benchmark index fell 0.3%. Weakness also occurred in the Australian market by 0.4%, in line with relatively quiet trading activity.

Meanwhile, stock markets in Japan and South Korea were closed for national holidays.

Global stock futures also moved limitedly. Nasdaq futures and S&P 500 futures each corrected by around 0.1%, EUROSTOXX 50 futures fell 0.2%, and FTSE futures weakened by up to 0.75%.