World shares fall and oil prices dip after attacks imperil the ceasefire
with Iran
[May 08, 2026] By
CHAN HO-HIM
HONG KONG (AP) — World shares retreated and oil prices fell back Friday
as the fragile ceasefire with Iran was strained by missile and drone
attacks that prompted U.S. retaliatory strikes on Iranian military
facilities.
U.S. futures rose despite the latest flare up in the conflict. The
future for the S&P 500 gained 0.5%, while that for the Dow Jones
Industrial Average was up 0.3%.
Investors are closely watching the war situation as negotiations between
the U.S. and Iran to end the war make limited progress. Tehran said
Thursday that it was still examining the latest proposals from the U.S.
for ending the war.
In early European trading, Britain's FTSE 100 fell 0.7% to 10,206.38.
Germany's DAX shed 1% to 24,417.08, while France's CAC 40 dropped 0.8%
to 8,134.92.
Tokyo’s Nikkei 225 fell 0.2% to 62,713.65 after closing the day before
at an all-time high. Energy and technology giant SoftBank Group lost
4.6% after soaring 18% on Thursday.
Elsewhere in Asia, South Korea’s Kospi edged 0.1% higher to 7,498.00, a
record closing high, as gains for some tech shares offset wider losses.
Hong Kong’s Hang Seng dropped 0.9% to 26,393.71 and the Shanghai
Composite index was unchanged at 4,179.95.
Australia’s S&P/ASX 200 lost 1.5% to 8,744.40. Taiwan’s Taiex fell 0.8%,
while India’s Sensex declined 0.5%.
Oil prices traded lower Friday after rising earlier in the day. Brent
crude, the international standard, dipped 0.2% to $99.84 per barrel.
Brent crude was roughly $70 a barrel before the Iran war began in late
February.
Benchmark U.S. crude fell 0.5% to $94.34 a barrel.
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The screens showing the Korea Composite Stock Price Index (KOSPI)
and the foreign exchange rate between U.S. dollar and South Korean
won are displayed at a dealing room of Hana Bank in Seoul, South
Korea, Friday, May 8, 2026. (AP Photo/Lee Jin-man)
 The U.S. Central Command said
Thursday that it intercepted “unprovoked” Iranian attacks on Navy
ships in the Strait of Hormuz, although no vessels were struck. But
U.S. President Donald Trump told reporters the ceasefire with Iran
was still intact.
The United Arab Emirates, a U.S. ally, said early Friday that its
air defenses were “actively engaging” with a missile and drone
attack.
Oil and fuel prices are expected to remain elevated for as long as
the Strait of Hormuz, a key waterway for oil and gas transit,
remains largely closed and a U.S. sea blockade on Iranian ports
continues.
On Thursday, U.S. stocks pulled back from records. The benchmark S&P
500 fell 0.4% and the Dow industrials slipped 0.6%. The
technology-heavy Nasdaq composite dropped 0.1% to 25,806.20.
Shares of Whirlpool sank 11.9% following weaker-than-expected
results, and Shack Shack tumbled 28.3% likewise. McDonald’s fell
0.1% after recording latest quarterly revenue that was better than
what analysts had expected.
The U.S. dollar fell to 156.65 Japanese yen from 156.93 yen. The
euro was trading at $1.1772, up from $1.1726.
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