Asian stocks fall and oil prices climb after attacks imperil the ceasefire with Iran

HONG KONG — Asian equities fell back and oil prices surged Friday as missile and drone attacks challenged the fragile truce with Iran that triggered U.S. retaliation strikes on Iranian military sites.

U.S. futures gained even as the latest escalation in the crisis happened.

Investors are following the current situation intently as talks between the U.S. and Iran to stop the war are going nowhere. Tehran said on Thursday it was still considering the latest U.S. proposals to end the war.

Tokyo’s Nikkei 225 lost 1.1% to 62,174.12 after ending at a record closing high of 62,833.84 the day before. Trading on Thursday also saw the index cross the 63,000 level for the first time. One of Japan’s major equities, SoftBank Group, fell more than 5%.

Elsewhere in Asia, South Korea’s Kospi dropped 1.1% to 7,409.63. The Hang Seng in Hong Kong fell 1.3% to 26,289.50. Shanghai Composite index dropped 0.3% to 4,167.56. Australia's S&P/ASX 200 dropped 1.7% to 8,729.40.

Taiwan's Taiex drops 0.5% The Sensex in India dropped 0.6%.

Oil prices moved higher early Friday after dropping the day before. Brent crude, the worldwide standard, rose 1.1 percent to $101.13 a barrel. Brent crude was almost $70 a barrel when the Iran war began in late February.

Benchmark U.S. crude added 0.7% to $95.47 a barrel.

The U.S. Central Command said Thursday it detected “unprovoked” Iranian attacks against Navy ships in the Strait of Hormuz, but no ships were hit. But U.S. President Donald Trump assured reporters the truce with Iran still existed.

The United Arab Emirates, a U.S. ally, said early Friday its air defenses were “actively countering” a missile and drone attack.

As long as the Strait of Hormuz, a crucial waterway for oil and gas transit, remains mostly closed and a marine blockade of Iranian ports by the U.S. continues, oil and fuel prices are projected to be high.

U.S. stocks fell back from records Thursday. The benchmark S&P 500 declined 0.4%, to 7,337.11. The Dow Jones Industrial Average fell 0.6% to 49,596.97. The tech-heavy Nasdaq composite declined 0.1% to 25,806.20.

Whirlpool shares fell 11.9% after its results missed expectations. Shack Shack shares also fell 28.3% after its results missed expectations. McDonald’s dipped 0.1% as the fast-food giant’s most recent quarterly sales beat analyst expectations.

The U.S. dollar slipped to 156.87 Japanese yen from 156.93 yen. The euro was trading at $1.1729, up from $1.1726.