Hong Kong stocks fell on Friday as rising tensions between the U.S. and Iran dampened risk appetite after markets reopened from a three-day Lunar New Year break.

The Hang Seng Index lost 292.59 points, or 1.1%, to close at 26,413.35, while the Hang Seng China Enterprises Index dropped 110.76 points, or 1.2%, to 8,959.56.

U.S. President Donald Trump said Iran must reach a deal over its nuclear program within 10 to 15 days or face "really bad things," prompting Tehran to warn it would retaliate against U.S. bases in the region if attacked.

Amid a significant U.S. military buildup in the Middle East that has heightened fears of a broader conflict, Trump said negotiations with Iran to resolve the standoff were progressing well, but insisted that Tehran deliver a "meaningful" agreement.

Crude prices rose on Friday and were on track for their first weekly gain in three weeks as geopolitical risks underpinned the market.

In corporate news, Hong Kong-listed shares of PetroChina (HKG:0857, SHA:601857) advanced nearly 4% as oil extended gains.

CNOOC (HKG:0883, SHA:600938) rose over 2% on firmer crude prices.