Asia markets set for mixed open as oil surges after U.S. moves to blockade Iran ports

The breakdown of negotiations over the weekend in Islamabad reignited worries that the U.S.-Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.

U.S. President Donald Trump has reportedly weighed resuming airstrikes on Iran, according to the Wall Street Journal. Trump last week agreed to a two-week ceasefire on Tuesday in exchange for Tehran allowing ships to pass through the strait. He had previously threatened to bomb every bridge and power plant in Iran.

Japan’s Nikkei 225 was poised to open lower, with the Chicago futures contract at 56,150, compared with the index’s previous close of 56,924.11.

Hong Kong Hang Seng index futures stood at 25,964, compared with the index’s last close of 25,893.54.

In Australia, futures last traded at 9,056, higher than the S&P/ASX 200‘s last close of 8,960.60.

Overnight on Wall Street, Dow Jones Industrial Average futures dropped by 517 points, or 1.1%. S&P 500 futures lost 1.1% and Nasdaq 100 futures shed 1.2%.

— CNBC’s Sarah Min and Spencer Kimball contributed to this report.