Asian Markets Mixed as Trump’s Deadline Looms for Iran Oil Route Reopening
Asian markets traded cautiously on Tuesday as oil prices surged ahead of a deadline set by U.S. President Donald Trump. The advance in crude followed his warning to Iran over reopening the Strait of Hormuz to all shipping. Traders monitored geopolitical headlines and energy markets for direction.
Regional stock moves
Tokyo’s Nikkei 225 gave back earlier gains and slipped 0.2% to 53,310.30. South Korea’s Kospi was virtually flat, down under 0.1% to 5,445.80.
Australia’s S&P/ASX 200 climbed 1.5% to 8,706.90. Shanghai’s Composite added 0.4% to 3,896.98. Hong Kong markets were closed for a holiday.
U.S. equities and broader tone
Wall Street drifted higher. The S&P 500 rose 0.4%, posting its first winning week in six. The Dow Jones gained 165.21 points to 46,669.88.
The Nasdaq climbed 117.16 points to 21,996.34. Investors noted the market’s cautious appetite amid energy and geopolitical risks.
Crude prices and the Iran standoff
Benchmark U.S. crude jumped $2.37 to $114.78 a barrel. Brent rose $1.40 to $111.17 a barrel. Both remain far above the roughly $70 level seen before the war.
Prices have swung as market participants weigh the war’s likely impact on global oil and gas flows. Officials and traders watched the clock on Trump’s deadline regarding Iran and calls for an Oil Route Reopening through the strait.
Diplomacy around the Strait of Hormuz
Iran rejected a recent ceasefire proposal on Monday and instead demanded a permanent end to the war. Iranian and Omani officials are discussing a mechanism to manage the strait.
The passage handles about one-fifth of global oil in peacetime. Iran’s control of the waterway has unsettled markets and economies worldwide.
Commentary and market implications
Analysts at Mizuho’s Singapore research team said recent U.S. actions have intensified an escalation cycle. They noted repeated extensions of initial ultimatums have complicated prospects for a quick resolution.
Differences among involved parties have made a comprehensive settlement unlikely. Countries continue to pursue bilateral and regional arrangements instead.
Bonds and currencies
Ten-year Treasury yields were steady at about 4.33%. That compared with roughly 3.97% before the war.
The U.S. dollar inched up to 159.89 Japanese yen from 159.62. The euro traded at $1.1529, down from $1.1543.
Reporting for Filmogaz.com.
