Asian stock markets climbed Friday amid ongoing uncertainty over a conflict that has driven oil prices above $100 per barrel and left critical energy supply routes disrupted, threatening household budgets and economic stability across the globe.
U.S. futures edged higher and Tokyo's Nikkei 225 rose 2.7% to 63,339.07. South Korea's Kospi gained 0.4% to 7,847.71, while Hong Kong's Hang Seng picked up 0.9% to 25,612.40 and the Shanghai Composite index climbed 0.9% to 4,112.90. Australia's S&P/ASX 200 gained 0.4% to 8,657.00, Taiwan's Taiex closed 2.2% higher, and India's Sensex rose 0.6%.
Energy Disruptions Hit Consumers
Oil prices remained elevated over disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit, with shipping activities still well below before the Iran war began in late February. Brent crude, the international standard, gained 2.3% to $104.97 a barrel. It was around $70 per barrel in February before the war's start. Benchmark U.S. crude traded 1.8% higher at $98.10 a barrel.
Despite these price shocks, a report showed inflation hitting a four-year low in April, at 1.4%, despite higher prices for oil and gas due to the war—a sign that households are absorbing energy cost increases even as other price pressures ease.
"Markets are still searching for signs of progress in a potential deal between the US and Iran," ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday. "While there are signs of optimism, uncertainty reigns."
Congressional Stalemate on War Powers
Talks between the U.S. and Iran have dragged on, adding to uncertainty. Republicans in Congress delayed into June planned votes on dismissing legislation that would compel President Donald Trump to withdraw from the war. The House had scheduled a Thursday vote on a war powers resolution brought by Democrats that would rein in Trump's military campaign. But as it became clear that Republicans would not have the numbers to defeat the bill, GOP leaders declined to hold a vote on it.
The congressional impasse leaves unresolved questions about democratic accountability and the constitutional balance of power over military action, even as energy markets remain volatile and consumers face sustained price pressure at the pump.
Wall Street Advances Modestly
Wall Street gained on Thursday, with the benchmark S&P 500 adding 0.2% to 7,445.72. The Dow Jones Industrial Average climbed 0.6% to 50,285.66, while the technology-heavy Nasdaq composite edged up 0.1% to 26,293.10.
Shares of Nvidia fell 1.8% despite better-than-expected quarterly results on the artificial intelligence frenzy, with some analysts believing its share price still as undervalued. Southwest Airlines gained 2.7% and American Airlines climbed 4.9% as oil prices eased before bouncing back. Ralph Lauren surged 13.9% following stronger-than-expected quarterly results.
In other dealings early Friday, the yield on the U.S. 10-year Treasury was at 4.57%, down from more than 4.67% earlier in the week, when higher global inflationary pressures stemming from the war fueled a surge in bond yields. The U.S. dollar rose to 159.12 Japanese yen from 158.98 yen. The euro was trading at $1.1605, down from $1.1619.
Why This Matters:
The surge in oil prices from around $70 per barrel in February to more than $104 today represents a direct cost to working families, small businesses, and transportation-dependent industries. Disruptions in the Strait of Hormuz—a chokepoint for global energy supplies—underscore the vulnerability of households to geopolitical shocks and the need for diversified, sustainable energy infrastructure. The congressional delay on war powers legislation raises questions about institutional checks on executive military action, particularly when such conflicts impose economic burdens on ordinary citizens. As diplomatic efforts continue without resolution, the human and economic costs of prolonged conflict accumulate, while democratic accountability mechanisms remain sidelined by partisan calculation.