Asian Markets Waver Amid Middle East Unrest and Rising Oil Prices

Asian shares have pulled back from their record highs as investors reassess the recent tech-driven rally and rising oil prices amid ongoing tensions in the Middle East. The MSCI's broadest index of Asia-Pacific shares outside Japan saw a decrease by 0.7%, after having tracked Wall Street to a new peak.

Rising energy prices, driven by escalating tensions between Iran and the U.S. in the Gulf, have punished major Asian markets. Iran's seizure of two container ships via the Strait of Hormuz has heightened regional unrest, triggering investor concern about the stability of the fragile Middle East ceasefire.

While electric automaker Tesla reported unexpectedly positive cash flow, its shares dipped after announcing plans for increased AI spending. Meanwhile, European stock futures brace for weaker openings as the impact of geopolitical instability and oil hikes weighs heavily on global markets.

(With inputs from agencies.)