On a Thursday morning in late May, Asian markets opened uneasily after the United States struck Iranian targets in what Washington called defensive action, a reminder that a conflict now nearly three months old still hangs over the global economy like weather over a harbor. Oil, which had tumbled the day before on hopes of peace, rose again as traders weighed a fragile ceasefire against conflicting reports about what a deal might look like. Beneath the numbers lies an old human pattern: people and nations seeking calm while each side tests how far the other will bend.
Asian Shares Slip and Oil Climbs Over $1 After U.S. Strikes on Iran
Negotiating on fumes, Trump says, with no rush to a deal
Mark
Wednesday stocks hit records, Thursday Asia slips. What changed overnight?
Mimi
The U.S. said it shot down four Iranian drones near the Strait of Hormuz and hit a ground control station in Bandar Abbas that was about to launch a fifth. Oil bounced back more than $1.
Luke
Worth noting that's the U.S. military's account, described as defensive. The source doesn't give an independent confirmation or an Iranian version.
Mark
And the markets read it as a threat to the ceasefire?
Mimi
Partly. But the analyst quoted, Tan Boon Heng of Mizuho, pointed more at conflicting reports about a deal's contours. Markets are wary of a deal, he said, and he finds a compromise hard to picture.
Luke
That's one analyst's read. The moves themselves are small, though. Brent is up $1.70 to $93.95 after falling 4.6% the day before.
Mark
So oil is still far below its peak?
Mimi
It surged well above $100 earlier. U.S. crude settled Wednesday at $88.68, back to mid-April levels.
Mark
Why are stocks at records with oil this high?
Mimi
Corporate profits for early 2026 came in surprisingly strong, and forecasts say that continues.
Luke
And Trump saying Iran is negotiating on fumes is his assertion. Nothing here confirms the state of the talks or when the Strait reopens.
Der Puls
- American forces downed four Iranian attack drones near the Strait of Hormuz and struck a ground station in Bandar Abbas before it could launch a fifth.
- Brent crude jumped $1.70 to $93.95 a barrel, reversing a sharp drop that had lifted hopes across trading floors.
- Asian stock indexes slid as Hong Kong's Hang Seng fell 1.9% and Seoul's Kospi lost 1.2%, shaken by doubts over the diplomacy.
- President Trump says Iran is negotiating on fumes, yet both sides still appear to protect the ceasefire through quiet back channels.
- Analysts find a compromise on the core issues hard to picture, so the next test is whether the ceasefire holds and tankers can pass the Strait again.
On a Thursday morning in late May, Asian markets opened uneasily after the United States struck Iranian targets in what Washington called defensive action, a reminder that a conflict now nearly three months old still hangs over the global economy like weather over a harbor. Oil, which had tumbled the day before on hopes of peace, rose again as traders weighed a fragile ceasefire against conflicting reports about what a deal might look like. Beneath the numbers lies an old human pattern: people and nations seeking calm while each side tests how far the other will bend.
Asian markets opened Thursday on a downward slope, just hours after the United States carried out strikes it described as defensive against Iran. Oil, which had dropped sharply the day before, climbed back by more than a dollar a barrel, and American stock futures slipped. The strikes followed American forces shooting down four Iranian one-way attack drones that threatened shipping near the Strait of Hormuz, and hitting a ground control station in Bandar Abbas that was reportedly about to launch a fifth.
President Trump said Iran was "negotiating on fumes" and insisted that the approaching November midterm elections would not push him toward a hasty deal to end a conflict now nearly three months old. In Tokyo, Seoul, Hong Kong and Shanghai, the mood turned cautious. Hong Kong's Hang Seng fell 1.9%, and Seoul's Kospi dropped 1.2%.
Analysts at Mizuho Bank in Singapore described the unease as a product of conflicting reports about the shape of any U.S.-Iran agreement. Still, both sides seemed to want the ceasefire preserved, and indirect channels of communication remained open. The difficulty lies in the substance: finding a compromise on the key issues looks remarkably hard.
Just a day earlier, the mood had been very different. Oil had fallen more than 4%, easing pressure on businesses and households, and U.S. stocks set fresh records. Airlines and cruise operators led the gains on hopes that cheaper fuel would brighten their profits. Prices remain well below the peak above $100 a barrel reached on hopes of reopening the Strait, which would let tankers leave the Persian Gulf again. What now matters is whether the ceasefire holds and whether the Strait finally opens.
Asian markets opened Thursday on a down note, hours after the U.S. military carried out what it described as defensive strikes against Iran. Oil, which had dropped sharply the day before, climbed back by more than $1 a barrel, and U.S. stock futures slipped slightly.
U.S. officials said Central Command forces shot down four Iranian one-way attack drones that posed a threat near the Strait of Hormuz. American forces also struck an Iranian ground control station in Bandar Abbas, which officials said was about to launch a fifth drone.
The strikes came as President Donald Trump said Iran is "negotiating on fumes." He added that November's U.S. midterm elections will not push him to hurry into a deal to end a conflict now nearly three months old.
In early Asian trading, Japan's Nikkei 225 edged up less than 0.1% to 65,039.78. South Korea's Kospi lost 1.2%, falling to 8,126.67. Hong Kong's Hang Seng shed 1.9% to 24,855.86, and the Shanghai Composite slipped 0.3% to 4,080.00.
Tan Boon Heng of Mizuho Bank in Singapore tied the mood to the diplomacy. Conflicting reports about the shape of a U.S.-Iran deal, he wrote, dampened risk sentiment as markets grew increasingly wary of a deal. He noted that both sides appear to want to preserve the ceasefire, with the U.S. toning down its language on renewed attacks and indirect channels of communication continuing. Even so, he said, it remains remarkably hard to envisage how a compromise could be reached on the key issues.
Wednesday had gone the other way. U.S. stocks crept to more records after oil fell more than 4%, easing pressure on consumers and businesses worldwide. The S&P 500 rose less than 0.1% to 7,520.36, the Dow Jones Industrial Average gained 0.4% to 50,644.28, and the Nasdaq composite added 0.1% to 26,674.73. All three set all-time highs.
Companies with large fuel bills led the rally, on hopes that cheaper oil will lift their profits. Norwegian Cruise Line Holdings climbed 6.1% and United Airlines rose 6.3%. Delta Air Lines gained 3% and reached an all-time high.
Brent crude fell 4.6% to $92.25 a barrel on Wednesday, as the ceasefire appeared to hold even after the U.S. military launched what it called "self-defense" strikes in southern Iran. After the further strikes, Brent was up $1.70 at $93.95 in early Thursday trading. U.S. benchmark crude gained $1.68 to $90.36, after falling 5.5% to settle at $88.68 on Wednesday, a level last seen in mid-April.
Prices have eased from a surge well above $100 a barrel on hopes that Washington and Tehran can agree to reopen the Strait of Hormuz, letting oil tankers leave the Persian Gulf for deliveries again. Stocks have kept hitting records despite the inflation and uncertainty that expensive oil has caused, largely because companies reported surprisingly strong profits at the start of 2026 and are forecast to keep doing so. What to watch now is whether the ceasefire holds and whether the Strait reopens to tankers.
Bemerkenswerte Zitate
It remains remarkably hard to envisage how a compromise can be reached on key issues.— Tan Boon Heng, Mizuho Bank, Singapore
Iran is negotiating on fumes.— President Donald Trump
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Politics & Governance