Asia Markets Mixed as Middle East Tensions Rise, Tech Stocks Dip

Traders in Asia are evaluating another round of mixed signals from the Middle East, as the U.S.-Iran war continues into its fourth month.

In an interview with CNBC, Israeli Prime Minister Benjamin Netanyahu said Israel and the U.S. were ready to return to military action against Iran, if needed.

The remarks pushed oil prices higher and stock futures down, even as progress was reported on a ceasefire between Israel and Lebanon and the U.S. House of Representatives voted to block further American military involvement.

In an exclusive interview with CNBC aired Wednesday, Netanyahu said that Trump had warned Iran of "a full scale return to military action," if necessary, emphasizing that it would ultimately be the U.S. president's decision.

Netanyahu, however, noted that there had been tactical disagreements between the U.S. and Israel, though they were largely on the same page on their Middle East strategy.

The comments appeared to spook oil traders, with Brent and WTI crude both moving higher on fears of renewed escalation, though crude remains below the psychologically important $100-per-barrel level.

S&P 500 futures were pointing lower after the benchmark snapped a nine-day winning streak during the trading day.

In a more positive development for a peace deal, Israel and Lebanon have agreed to implement a ceasefire. Asia markets, however, opened lower Thursday as Mideast worries keep investors on edge.

Signaling diminishing appetite for the conflict in Washington, the U.S. House voted in favor of a war powers measure that would direct an end to U.S. military involvement in the Iran conflict unless Congress authorizes continued action.

While the bipartisan vote underscores growing congressional pushback over the scope and duration of the Iran campaign, the measure still needs to pass the Senate, and any final legislation could face a presidential veto.

Trump on Wednesday suggested that Iran had agreed not to have nuclear weapons, while adding that "they can change their mind." Iran's Foreign Ministry declined to comment on Trump's interview when contacted by CNBC. A government official, who was not authorized to speak publicly, told CNBC Trump's words were "misleading."

The comments came after the The Kuwait International Airport was struck by Iran, a day after the U.S. Central Command launched "self-defense strikes" on Qeshm Island in the Persian Gulf.

Corporate America delivered its own set of headlines on Wednesday, pouring cold water on Wall Street's recent tech-led rally.

Broadcom shares plunged nearly 14% after-hours after the company reported weaker-than-expected software revenue and didn't raise its full-year AI chip sales target. CrowdStrike shares also tumbled around 10% in after-hours trading despite its fiscal first-quarter results narrowly beating Wall Street expectations.

In some major capital markets developments in the tech world, SpaceX priced its IPO at of $135 per share, implying a valuation of about $1.77 trillion.

The offering, which could raise around $75 billion through the sale of 555.6 million shares, would rank SpaceX among the largest in U.S. companies by market cap, putting it above Tesla.

— Dylan Butts