Trump’s Iran Decision Looms, Markets Mixed as Tensions Rise and Dollar Dips – Asia Market Wrap

European equity futures climbed and the dollar fell, after the White House said President Donald Trump would decide within two weeks whether Washington will join Israel in launching strikes against Iran.

A gauge of regional shares advanced 0.5%, with equity benchmarks in South Korea, Hong Kong and China all in the green. Contracts for the S&P 500 were down around 0.2% from Wednesday’s close in the Asia session, compared with a 0.9% drop on Thursday when US markets were closed for the Juneteenth holiday.

Brent crude fell around 2% Friday to temper gains from earlier in the week. Treasuries were steady while a gauge of the dollar headed for a second day of declines. The yen strengthened to around 145 per dollar.

Traders’ sentiment turned more cautious following a report that senior US officials are preparing for a possible strike on Iran in the coming days. Markets were already on edge after the Federal Reserve downgraded its estimates for growth this year and projected higher inflation.

Israel struck more of Iran’s nuclear sites on Thursday and warned its attacks could bring down Tehran’s leadership as both sides awaited a decision from Trump on whether to join the offensive.