- Asia-Pacific markets showed mixed early Monday amid Middle East tensions and US-Iran strikes
- Japan's Nikkei 225 fell 0.35%, Topix gained 0.43%, South Korea's Kospi dropped 2.29% at open
- US attacked Iranian military targets after Iran's strikes on vessels in the Strait of Hormuz
Asian Markets Today: Asia-Pacific markets traded mixed early Monday following the latest developments in the Middle East. Japan's Nikkei 225 slipped 0.35% while the Topix rose x0.43%. The Kospi dropped 2.29% at open, while the small-cap Kosdaq added 0.97%. Australia's benchmark S&P/ASX 200 was 0.41% higher. Tensions in the Middle East escalated over the weekend after the US struck Iranian military targets in retaliation for Iran's strikes on shipping vessels in the Strait of Hormuz.
Global markets are still parsing through mixed signals following the recent developments in the Middle East. The US attacked Iranian military targets over the weekend in retaliation to Tehran carrying out strikes along the Strait of Hormuz. US President Donald Trump again threatened to annihilate Iran, and announced in a Truth Social post: "United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!"
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US-Iran geopolitical tensions move markets
Following the strikes, the United States and Iran agreed to halt military strikes against each other and will meet on Tuesday in Doha, Qatar, to resolve tensions over the Strait of Hormuz, a senior US official told Axios. "We decided to stop all the kinetic activity," the official said, using the military's term for strikes and other attacks. A second US official told the news platform that both sides would stand down "for now" and that vessels could move freely through the strait as technical talks continue.
The agreement follows two nights of renewed hostilities. Iran had attacked commercial vessels in the Gulf, prompting US strikes on military targets inside Iran, including air defense sites, drone facilities and mine-laying capabilities. Global crude oil prices rebounded on Monday after the Axios report hinted at easing fears of a prolonged escalation in the Middle East.
Brent crude rose as much as 1.9% to $73.39 per barrel before trimming some gains, while the US West Texas Intermediate traded near $70 per barrel. The recovery comes after heightened tensions saw the US strike Iranian military targets in retaliation for Tehran's attack on a commercial vessel near the Strait of Hormuz, one of the world's most critical oil shipping routes. Commercial shipping through the Strait continues, although shipowners remain cautious as hundreds of vessels are still waiting to exit the Persian Gulf.
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