Asian stock markets’ outlook turns out to sombre on Thursday as the doubts loom large on the effectiveness of ceasefire agreement between the US and Iran.

In the wake of turbulent geopolitical landscape, oil prices have surged, reminding investors the inflationary fallout would last a long time yet.

The cracks in Gulf truce have begun to appear as Iran is still exerting its authority over Strait of Hormuz and demanding tolls for safe passage through the vital oil artery.

Taking to social media, President Donald Trump has declared the presence of US forces in the region until a deal is reached. In the case of any failure to reach an agreement, the region once again will witness the start of fighting.

According to Nigel Green, CEO at ​deVere Group, “You have a fifth of the world's oil supply moving ⁠through a corridor that is still effectively under the influence of one of the parties to the conflict. That's not stability.”

"You don't need a full blockade to move oil markets sharply higher again," he added.

Global markets are grappling with the aftermath of recent geopolitical tensions, leading to a sharp rebound in energy prices, especially in oil prices.

US crude futures rose 3.1 percent to $97.22 per barrel. Brent crude bounced 2.1 percent to $96.86 per barrel. With prices sitting roughly 40 percent higher than pre-conflict levels, analysts warn of an inevitable global inflationary spike.

South Korea declined 0.4 percent, following an increase of 6.8 percent. Japan’s Nikkei also fell flat after jumping 5.4 percent the previous session.

The mid-week rally on Wall Street lost its momentum, leaving S&P 500 and Nasdaq futures both trading 0.2% lower as Wednesday’s gains began to fade.

The Euro stabilized at $1.1669, retreating from its recent peak and the Dollar steadied at 158.68 yen after a mid-week dip.

In commodity markets, gold showed modest gains at $4,721 per ounce, holding firm after an overnight peak of $4,777.