Asian stock markets displayed mixed performance Friday following losses on Wall Street, as oil prices retreated more than $1 after reaching their highest levels since summer 2024. The trading session occurred as the war with Iran entered its seventh day, with Israeli airstrikes continuing to target the capitals of Iran and Lebanon.

U.S. futures pointed to a modest recovery, with the S&P 500 future gaining 0.2% and the Dow Jones Industrial Average future up 0.3%. In Asian trading, South Korea's Kospi edged up less than 0.1% to 5,584.87, concluding a volatile week that saw a record 12% loss on Wednesday followed by a nearly 10% rebound on Thursday. The index had surpassed 6,000 in recent weeks before the war began affecting financial markets.

Other major Asian indices showed varied results. Tokyo's Nikkei 225 gained 0.6% to 55,620.84, while Hong Kong's Hang Seng jumped 1.6% to 25,732.75. The Shanghai Composite index rose 0.4% to 4,124.19. However, Australia's S&P/ASX 200 declined 1% to 8,851.00, Taiwan's Taiex fell 0.2%, and India's Sensex lost 0.8%.

Oil markets provided some relief from the week's dramatic increases. Benchmark U.S. crude dropped 0.8% to $80.38 per barrel after hitting $81.01 on Thursday, while Brent crude fell 0.6% to $84.79 per barrel following Thursday's peak of $85.41. Analysts noted that Friday's price decline followed a 30-day temporary waiver from the U.S. allowing Indian refiners to purchase Russian oil, though they characterized this as not a "game-changer."

Market uncertainty has created significant volatility throughout the week, with analysts warning that oil prices reaching $100 per barrel could harm global economic growth. The situation remains particularly sensitive given that roughly one-fifth of the world's seaborne oil flows through the Strait of Hormuz, located between Iran and Oman, where tanker activities have been disrupted.

On Thursday, U.S. markets closed lower with the S&P 500 falling 0.6% to 6,830.71, the Dow losing 1.6% to 47,954.74, and the Nasdaq dropping 0.3% to 22,748.99. Airline stocks were among the biggest losers as higher oil prices increased fuel costs while hundreds of thousands of passengers remained stranded across the Middle East due to the conflict.