Asian stocks pulled back from a record high and crude oil rose as escalating tensions in the Middle East revived concerns over energy supplies, testing the durability of the recent equity rally.
The MSCI Asia Pacific Index fell 1.2% as clashes between the US and Iran heightened tensions in the Middle East, fueling speculation that higher energy costs would weigh on economic growth.
More than two shares fell for every one that rose. Even so, the gauge is set for a fifth week of gains, the longest winning streak since January.
Brent crude rebounded from three days of losses to climb about 1% to put it around $101 per barrel amid fears a prolonged closure of the Strait of Hormuz would disrupt oil and gas supplies.
Despite Friday’s jump, the commodity has fallen over 6% this week. Some resilience emerged in markets, with US stock-index futures erasing early losses to gain 0.2%.
Earlier, American forces responded to Iranian attacks on naval destroyers as they sailed in the Strait of Hormuz on Thursday. President Donald Trump threatened to hit Iran “more violently” in the future if the Islamic Republic didn’t sign a deal fast.
