Asian Markets Rise on Hope of Iran Conflict Resolution

Asian Markets Rebound as Oil Prices Drop After Trump Signals Iran War Could End Soon​

Asian stock markets rebounded on Tuesday following a sharp sell off in the previous session, while crude oil prices declined after US President Donald Trump signaled that the war with Iran could end soon. The comments helped lift sentiment across global markets and supported a positive close for Wall Street.

Asian Stocks Rise After Global Market Recovery​

Shares across key Asian markets moved higher, reflecting improved investor sentiment after the previous day's volatility. Markets in Japan, Australia, and South Korea advanced, helping the broader MSCI Asia Pacific Index climb 1.7 percent.

The gains followed a positive session in the United States where major technology stocks led the recovery. The S&P 500 Index and the Nasdaq 100 Index both closed higher on Monday as investors responded to easing concerns around the ongoing conflict.

Trump Comments Trigger Oil Price Decline​

Oil prices fell sharply after Trump indicated that the military operation against Iran was progressing faster than expected. The US president said the war would end very soon, although he clarified that the conflict was unlikely to conclude within the current week.

Trump stated that US military objectives could be described as pretty well complete, which contributed to a shift in market sentiment.

West Texas Intermediate crude dropped around 7 percent on Tuesday after prices began declining following the president's remarks. During Monday’s trading session, the commodity had surged to as high as $119.48 per barrel before reversing course.

Overall, oil prices declined by as much as 10 percent from their peak during the volatile session.

Global Markets Reverse Earlier Moves​

Other financial markets also shifted direction after the remarks. Yields on the 10 year US Treasury note halted a five day rise, while the US dollar weakened during the New York trading session.

Despite the rebound in equities, US equity index futures slipped in early Asian trading, suggesting that the recovery in global markets may not hold through the next session.

Oil Market Volatility Remains Elevated​

Crude oil experienced one of its most volatile sessions in recent years. Prices swung within the widest trading range since the period during the pandemic when oil prices briefly turned negative.

Earlier on Monday, oil prices surged toward $120 per barrel as tensions in the Middle East escalated. However, prices later pulled back as major economies considered releasing emergency oil reserves to stabilize supply.

Strait of Hormuz Closure Continues to Impact Supply​

The critical Strait of Hormuz remains effectively closed, disrupting global oil supply routes. The situation has led major Persian Gulf producers, including Saudi Arabia, to curtail output.

Meanwhile, the Group of Seven finance ministers said they are prepared to take steps to support energy supply if necessary, including releasing strategic oil reserves. However, the group indicated that such measures have not yet been implemented.

US Considering Measures to Stabilize Oil Prices​

Trump is also expected to review a range of options aimed at easing oil prices. These measures may include restricting US oil exports and waiving certain federal taxes, according to a report by Reuters.

Markets remain highly sensitive to developments in the Middle East conflict. Analysts note that even a single headline related to the situation has been enough to trigger sharp swings across oil prices, currencies, and global equity markets.