Asian shares experienced a downturn on Thursday following U.S. military strikes in Iran, which were described as defensive actions. The U.S. military reported intercepting Iranian drones near the Strait of Hormuz and targeting a ground control station in Bandar Abbas. In response to these developments, oil prices surged, with Brent crude rising by $1.70 to $93.95 per barrel. President Donald Trump remarked that Iran is 'negotiating on fumes' and indicated that the upcoming midterm elections would not expedite a deal to resolve the ongoing conflict. In early trading, Japan's Nikkei 225 saw a minor increase, while South Korea's Kospi and Hong Kong's Hang Seng index fell by 1.2% and 1.9%, respectively. Analysts noted that mixed signals regarding U.S.-Iran negotiations are dampening market sentiment. Despite the inflationary pressures from rising oil prices, U.S. stocks reached record highs, buoyed by strong corporate earnings, particularly in sectors sensitive to fuel costs.