Asia markets set to open lower as oil prices surge due to Iran conflict

Markets Set to Open Lower Amid Oil Price Surge

Markets in Asia are bracing for a lower open as global economic uncertainty and rising oil prices take center stage. Following overnight losses on Wall Street, Asian markets are expected to face pressure due to the surge in energy prices caused by the Iran conflict.

Oil prices broke through the $80 per barrel mark, with Brent futures climbing 3.54% to settle at $84.31. Meanwhile, U.S. West Texas Intermediate crude dipped 2% to trade at $79.38, reflecting the impact of geopolitical tensions.

Additionally, concerns over global trade were highlighted after New York Attorney General Letitia James and other state prosecutors sued to block President Donald Trump's global tariff regime. This legal challenge follows a ruling by the U.S. Court of International Trade, which ordered companies to receive tariff refunds for duties struck down by the Supreme Court.

Indices across Asia are showing early declines, with Australia's S&P/ASX 200 falling 1.15% and Japan's Nikkei 225 futures pointing to a weaker open. Hong Kong's Hang Seng index futures are also lower, dropping to 25,037 from a recent close of 25,321.34.

Overnight, U.S. stock markets also fell, with the Dow Jones Industrial Average declining 1.61%, the S&P 500 dropping 0.56%, and the Nasdaq Composite slipping 0.26%. Key sectors like Boeing and Caterpillar are among those leading the sell-off, as concerns about a global economic slowdown persist.

For more updates on global markets and business news, stay tuned to CNBC.

By CNBC's Sean Conlon and Pia Singh