Asian stocks declined Friday as investors weighed higher oil prices, rising bond yields and the prospect of another US-Iran war escalation ahead of US non-farm payrolls data. Both major crude contracts extended Thursday's gains as Washington and Tehran remained deadlocked over ending the crisis and reopening the Strait of Hormuz. Axios reported that the US military was dispatching additional warships, aircraft and troops to the region, with the USS Theodore Roosevelt and its strike group potentially arriving next month amid speculation that US President Donald Trump could resume the war. Persistent fuel costs have lifted inflation since the conflict began at the end of February, driving markets to price four additional 25-basis-point rate hikes by June 2027, compared with expectations for at least 100 basis points of cuts before the war. The Bloomberg Commodity Index was up more than 37% from a year earlier and was heading toward one of its strongest 12-month gains since the 2022 energy crisis. Hong Kong fell 2.6%, while Tokyo, Singapore, Wellington, Manila and Jakarta also declined; Seoul, Sydney and Taipei gained, and Shanghai was closed. Traders are using the payrolls report to assess the Federal Reserve's next move after last month's rate increase. Recent comments from Vice Chair Philip Jefferson, Michelle Bowman and New York Fed chief John Williams supported a measured approach, while Dallas president Lorie Logan said rates may need to rise by 50 basis points or more.