Asian stocks were positioned for declines Thursday as renewed clashes between US and Iran intensified pressure on a fragile ceasefire agreement. The escalating tensions sent shockwaves through regional markets, with investors fearful of potential disruptions to global trade routes and energy supplies that could last several weeks.

Rising oil prices emerged as the immediate market response, reflecting concerns that any further escalation could threaten Middle East energy exports. The volatility comes as regional businesses already face challenges from slower economic growth and persistent trade uncertainty across multiple manufacturing sectors.

The fragile ceasefire now faces its most serious test since implementation, with market participants closely monitoring diplomatic channels for signs of de-escalation or further military confrontation that could reshape the geopolitical landscape throughout the region.