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View of the Skytree from Ueno and Asakusa in Tokyo
Jackal Pan | Moment | Getty Images
Asia-Pacific markets were set to fall Wednesday, as escalating tensions between Israel and Iran weigh on investor sentiment.
Adding fuel to fire, U.S. President Donald Trump is weighing a military strike on Iran, while demanding the country's leader Ayatollah Ali Khamenei "surrender," former and current U.S. officials told NBC News.
Trump, in a post on Truth Social, demanded "UNCONDITIONAL SURRENDER!" by Iran.
"Comments from President Trump have triggered speculation that the U.S. will get more involved in the conflict between Iran and Israel that escalated significantly five days ago," ANZ analysts wrote in a note.
Japan's benchmark Nikkei 225 was set to open lower, with the futures contract in Chicago at 38,295 while its counterpart in Osaka last traded at 38,210, against the index's Tuesday close of 38,536.74.
Investors are also awaiting Japan's May trade data as it bears the brunt of U.S. tariffs.
Futures for Hong Kong's Hang Seng index last traded at 23,813, pointing to a weaker open compared to the HSI's last close of 23,980.30.
Australia's S&P/ASX 200 is slated to start the day slightly lower with futures tied to the benchmark at 8,529 compared to its last close of 8,541.30.
U.S. stock futures inched lower as traders brace for the Federal Reserve's rate decision due Wednesday afternoon stateside.
Overnight on Wall Street, all three major averages ended the trading day lower. the Dow Jones Industrial Average lost 299.29 points, or 0.70%, to close at 42,215.80. The S&P 500 shed 0.84% to end at 5,982.72, while the Nasdaq Composite fell 0.91% and settled at 19,521.09.
— CNBC's Sean Conlon and Brian Evans contributed to this report.
Stocks close in negative territory
The three major averages finished Tuesday's session lower.
The Dow Jones Industrial Average fell 299.29 points, or 0.7%, to end at 42,215.80. The S&P 500 lost 0.84%, closing at 5,982.72, while the Nasdaq Composite slipped 0.91% to finish at 19,521.09.
— Sean Conlon
Oil prices close more than 4% higher
Crude oil futures finished the session more than 4% higher, after President Donald Trump demanded Iran's unconditional surrender and threatened its supreme leader, Ayatollah Ali Khamenei.
The U.S. crude oil contract for July delivery gained $3.07, or 4.28%, to close at $74.84 per barrel, while global benchmark Brent for August rose $3.22, or 4.4%, to $76.45.
Oil prices had closed lower Monday on reports that Iran was seeking a ceasefire with Israel, but those hopes faded as the conflict went on for a fifth day with Trump taking a harder line against Iran.
Prices have risen about 10% since Israel launched its air campaign against Iran's nuclear and ballistic missile programs on Friday.
— Spencer Kimball
Trump threatens Iran's leader in Truth Social posts
U.S. President Donald Trump speaks to reporters aboard Air Force One after departing early from the the G7 summit in Canada to return to Washington, June 17, 2025.
Kevin Lamarque | Reuters
President Donald Trump has posted three times on Truth Social in the past hour in a series of messages that appears to be threatening Iran and its political leader Ali Khamenei.
In the first post, Trump wrote that "We now have complete and total control of the skies over Iran."
The second post hinted a potential future attack from the United States on Iran. "We know exactly where the so-called 'Supreme Leader' is hiding," Trump wrote. "He is an easy target, but is safe there - We are not going to take him out (kill!), at least not for now. But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin. Thank you for your attention to this matter!"
The third post simply reads "UNCONDITIONAL SURRENDER!"
— Jesse Pound
English (US)