US Strikes on Iranian Launchers Send Oil Higher, Asian Stocks Lower

U.S. forces struck Iranian missile launchers on Larak Island, an action that pushed oil prices higher as traders priced in the risk of further disruption to Gulf shipping and energy supply. The strikes mark an escalation in tensions between Washington and Tehran that had already been simmering. The reaction spread quickly across markets. Asian shares fell as oil prices and bond yields both stayed elevated, a combination that typically squeezes equity valuations by raising input costs and borrowing costs at once. U.S. stock futures slipped in the hours that followed, reflecting the same worry ahead of the next Wall Street session. What remains unresolved is whether this is an isolated strike or the start of a longer exchange. Iran has not yet detailed a response, and the durability of the oil price move will depend on whether shipping lanes near the Strait of Hormuz stay open.