Asian shares retreated from record highs on Thursday as oil prices extended their gains on renewed shipping woes in the Gulf, underscoring fragile risk sentiment as a peace deal eludes the U.S. and Iran.

European stocks are bracing for a much weaker open, with pan-region futures down 1.1%. Wall Street futures also skidded 0.5% in Asia.

Overnight, the S&P 500 climbed 1% and the Nasdaq jumped 1.6% to notch fresh record-closing highs, helped by a strong start to the earnings season that has eased concerns about the health of the U.S. consumer despite rising energy prices from the Iran war.

MSCI's broadest index of Asia-Pacific shares outside Japan had earlier tracked Wall Street and rallied to a record of 831.56 points, but selling soon kicked in. It was last down 0.5%.

Japan's Nikkei vaulted to a new high for a second day before falling 0.9%. Markets in Taiwan and South Korea also hit new highs and then turned lower.

China's blue chips fell 0.8% and Hong Kong's Hang Seng index skidded 1.1%.