Asian shares are mixed and oil prices rise amid Iran-Israel crisis
In Asian shares markets, a dealer walks past near the screens showing the foreign exchange rates. This was at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, June 18, 2025. (AP Photo/Lee Jin-man)
HONG KONG — Asian shares were mixed and oil prices advanced Wednesday after the escalation of conflict in the Middle East hit Wall Street.
US benchmark crude oil was up 24 cents at $73.51 per barrel. Brent crude, the international standard, was up 28 cents at $76.71 per barrel.
Crude prices rose more than 4 percent on Tuesday after US President Donald Trump left a Group of Seven summit in Canada early. Trump warned that people in Iran’s capital should evacuate immediately.
READ: ‘Unconditional surrender’: Trump demands this from Tehran as Iran reels
Within about eight hours, Trump went from suggesting a nuclear deal with Iran remained “achievable” to urging Tehran’s 9.5 million residents to flee for their lives.
The fighting has driven prices for crude oil and gasoline higher. Iran is a major oil exporter and it sits on the narrow Strait of Hormuz, through which much of the world’s crude passes.
Past conflicts in the area have caused spikes in oil prices. However, they’ve historically proven brief after showing that they did not disrupt the flow of oil.
Asian shares’ results
Japan reported that its exports fell in May as the auto industry was hit by Trump’s higher tariffs. Japan’s exports to the US fell more than 11 percent. But Tokyo’s Nikkei 225 jumped 0.7 percent to 38,803.1.
Hong Kong’s Hang Seng dropped 1.2 percent to 23,695.62 while the Shanghai Composite Index retreated 0.2 percent to 3,380.47.
The Kospi in Seoul gained 0.6 percent to 2,967.89 while Australia’s S&P/ASX 200 shed 0.2 percent to 8,528.5.
On Tuesday, US stocks slumped under the weight of higher oil prices and weaker than expected retail sales in May.
The S&P 500 fell 0.8 percent to 5,982.72 and the Dow Jones Industrial Average dropped 0.7 percent to 42,215.8. The Nasdaq composite fell 0.9 percent to 19,521.09.
Pricier oil can help stocks of companies in the solar industry because they increase the incentive to switch to alternative energy sources.
READ: Philippines bracing for oil, fertilizer price shocks from Middle East crisis
But solar stocks tumbled Tuesday on the possibility that Congress may phase out tax credits for solar, wind and other energy sources. These produce fewer emissions that change the Earth’s climate.
Enphase Energy dropped 24 percent, and First Solar fell 17.9 percent.
Treasury yields fell after a report said shoppers spent less last month at US retailers than the month before. Solid spending has been one of the linchpins keeping the economy out of a recession. But part of May’s drop may have simply been a return to more normal trends.
In April, some shoppers rushed to buy automobiles to get ahead of Trump’s tariffs.
Verve Therapeutics soared 81.5 percent. This was after Eli Lilly said it would buy the company developing genetic medicines for cardiovascular disease in a $1-billion deal. This could be worth up to $1.3 billion if certain conditions are met. Lilly’s stock fell 2 percent.
