Asian markets tumbled and oil prices spiked on Thursday as uncertainty over the US-Iran ceasefire agreement rattled investors. Brent crude jumped 2.9 per cent to $97.51 a barrel, while West Texas Intermediate climbed 3.4 per cent to $97.63 per barrel. The surge reversed a 13 per cent drop from the previous day when news of the ceasefire initially boosted markets.

South Korea's Kospi benchmark slid 1.7 per cent and Japan's Topix declined 0.5 per cent, with both countries' currencies weakening against the dollar. The market reaction reflects heightened concerns about regional stability, particularly regarding the Strait of Hormuz passage. Tehran's threat to withdraw from the ceasefire pact over Israeli attacks on Hezbollah has intensified fears of renewed conflict.

Hong Kong's Hang Seng index and mainland China's CSI 300 both opened down 0.8 per cent, extending losses across the region. The market volatility underscores the significant exposure of Asian economies to Middle East tensions, given their substantial energy imports from the region. Investors are now reassessing the durability of the ceasefire agreement amid escalating rhetoric from both sides.