Stocks Drop as Iran Optimism Fades, Oil Declines: Markets Wrap

Ships anchored in the Strait of Hormuz near Larak Island, Iran on May 16.

Photographer: Majid Saeedi/Getty Images

Equities declined as concerns around Iran lingered even after President Donald Trump said he was holding off on fresh strikes on the Middle East country. Oil fell.

MSCI’s gauge of Asia Pacific equities dropped 0.5% and US equity-index futures slipped 0.1% as initial optimism from Trump’s comments gave way for renewed concerns about the transit of oil and gas through the vital Strait of Hormuz. Tech shares were weak with South Korea’s Kospi sliding 4.1%.