Asian stocks broadly declined on Thursday with Japan and Hong Kong leading losses, as geopolitical tensions escalated after a media report stated the U.S. was preparing for a potential military strike on Iran.

U.S. President Donald Trump once again lashed out against Federal Reserve Chair Jerome Powell on Wednesday, just hours after the central bank left interest rates unchanged and remained non-committal to future easing.

Senior U.S. officials are preparing for the possibility of a strike against Iran by as soon as this weekend, Bloomberg reported on Thursday, although the situation still remains unclear. 

Oil prices fell in volatile trade on Thursday amid heightened speculation over whether the U.S. will become involved in the Israel-Iran conflict, with a recent run-up in crude also facing some resistance from a stronger dollar. 

The ongoing tensions in the Middle East are unlikely to pose a significant threat to Malaysia's economy due to its minimal direct trade exposure to the region, according to CIMB Securities.

Thailand’s exports rose by their fastest annual rate in more than three years in May, beating expectations after shipments to the United States soared, and the commerce minister said on Wednesday (Jun 18) that they would continue to perform well in 2025.