- Asian stocks mostly fell, with South Korea's Kospi rising 3.04% after a holiday
- Japan's Nikkei 225 dropped 0.38%, while Australia's ASX 200 gained 0.01%
- US President Trump ruled out extending the US-Iran ceasefire, raising tensions
Asian stock markets traded mostly lower on Tuesday, with South Korea's Kospi bucking the regional trend after returning from a holiday. Japan's Nikkei 225 fell 0.38%, while Australia's ASX 200 was up 0.01%. The Kospi surged 3.04%.
The moves came as uncertainty over the US-Iran ceasefire increased after US President Donald Trump ruled out extending a 60-day agreement with Tehran. Trump also threatened Oman with military action, adding to concerns over the prospects of a diplomatic resolution.
Trump said informal discussions with Iran's Revolutionary Guard were taking place but indicated that Washington was not under pressure to reach an agreement quickly. He told Fox News that Iran was playing a strong negotiating game but was facing severe economic pressure.
Oil prices extended their advance for a third straight session as expectations of a near-term settlement between Washington and Tehran weakened. Brent crude climbed above $91 a barrel after settling at its highest level since late July, while West Texas Intermediate traded near $85.
The agreement referenced by Trump was signed in June and formally expired on Monday, adding another layer of uncertainty around the ceasefire and the outlook for the conflict.
Wall Street provided a weak lead. The Dow Jones Industrial Average and S&P 500 each lost 0.5% in the previous session, while the Nasdaq Composite declined 0.3%.
US stock futures were largely subdued in early Asian trading. Dow futures fell 25 points, while S&P 500 futures and Nasdaq-100 futures were marginally lower.
Higher oil prices and persistent tensions between Washington and Tehran are also keeping inflation concerns in focus. Treasury yields rose in the previous US session as investors assessed the potential impact of elevated energy costs on the interest-rate outlook.
For Asian markets, investors will now track developments around the US-Iran conflict and crude prices, with any deterioration in the situation likely to keep pressure on broader risk sentiment.
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