Asian stock markets experienced a mixed performance on Wednesday, with oil prices declining amidst investor sentiment that had calmed following the ongoing conflict in the Middle East. U.S. benchmark crude oil fell 11 cents to $73.16 per barrel, while Brent crude, the international standard, lost 15 cents to $76.30 per barrel. The previous day, crude prices had risen more than 4%. U.S. President Donald Trump's sudden departure from a Group of Seven summit in Canada and his subsequent warning for people in Iran's capital to evacuate immediately added to the geopolitical tensions in the region. Trump's stance shifted within eight hours from suggesting a nuclear deal with Iran remained "achievable" to urging Tehran's 9.5 million residents to flee for their lives. The fighting in the region has driven up prices for crude oil and gasoline, as Iran is a major oil exporter that sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Despite the geopolitical tensions, Japan reported that its exports fell in May due to higher tariffs imposed by Trump on the auto industry, with exports to the U.S. falling more than 11%. However, Tokyo's Nikkei 225 index jumped 0.9% to 38,885.15. Hong Kong's Hang Seng index dropped 1.3% to 23,668.22, while the Shanghai Composite Index added 0.1% to 3,389.96. In Seoul, the Kospi index gained 0.7% to 2,972.19, while Australia's S&P/ASX 200 shed 0.1% to 8,531.20. On Tuesday, U.S. stocks had slumped under the weight of higher oil prices and weaker-than-expected retail sales in May. The S&P 500 fell 0.8% to 5,982.72, and the Dow Jones Industrial Average dropped 0.7% to 42,215.80. The Nasdaq composite fell 0.9% to 19,521.09. Trump's recent statements on Israel's fight with Iran have raised concerns about the potential for further escalation in the region. On his social media platform, he called for "UNCONDITIONAL SURRENDER!" and said, "We are not going to" kill Iran's leader "at least for now." Pricier oil can help stocks of companies in the solar industry because it increases the incentive to switch to alternative energy sources. However, solar stocks tumbled on Tuesday on the possibility that Congress may phase out tax credits for solar, wind, and other energy sources that produce fewer emissions that change the Earth's climate. Enphase Energy dropped 24%, and First Solar fell 17.9%. Treasury yields fell after a report said shoppers spent less last month at U.S. retailers than in the previous month. Solid spending has been one of the linchpins keeping the economy out of a recession, but part of May's drop may have simply been a return to more normal trends
