Asia markets mixed, oil pulls back on Trump’s Iran stance

March 31, 2026 (MLN): Asia markets experienced sharp volatility on Tuesday, tracking a sudden reversal in global oil prices after indications that Donald Trump may seek to avoid a prolonged military conflict with Iran.

According to a report by The Wall Street Journal, Trump has conveyed to advisers a willingness to halt U.S. military operations against Iran, even if the strategically vital Strait of Hormuz remains largely inaccessible.

The move signals a potential shift toward deescalation amid mounting concerns over rising energy costs and inflationary pressures.

Extending military efforts to reopen the Strait of Hormuz a critical artery for global oil shipments could prolong the conflict beyond initial expectations of up to six weeks, according to CNBC.

The waterway previously handled nearly 20% of global seaborne oil trade but has seen traffic collapse following U.S. and Israeli strikes on Iran since late February.

Equity markets across the Asia-Pacific region showed the uncertainty. South Korea’s Kospi index dropped 2.2%, while the Kosdaq fell 1.9%.

The Korean won weakened 0.67% against the U.S. dollar, trading near levels last seen during the 2009 financial crisis.

Japan’s Nikkei 225 edged down 0.13%, while the broader Topix index recovered to post a modest gain of 0.18%. In Australia, the S&P/ASX 200 reversed earlier losses to close 0.9% higher.

Hong Kong’s Hang Seng index slipped 0.3%, while mainland China’s CSI 300 remained largely flat, reflecting cautious investor sentiment amid ongoing geopolitical developments.

Overnight in the United States, major indices delivered mixed performance. The S&P 500 declined 0.39% to 6,343.72, marked its third consecutive session of losses.

The Nasdaq Composite dropped 0.73% to 20,794.64, while the Dow Jones Industrial Average managed a marginal gain of 0.11% to close at 45,216.

Despite rising energy prices, Jerome Powell stated that the inflation outlook remains stable and does not currently warrant additional interest rate hikes by the Federal Reserve.

Meanwhile, U.S. stock futures indicated a positive start ahead, with S&P 500 futures rising 0.3%, Nasdaq 100 futures gaining 0.2%, and Dow futures advancing 0.4%, suggesting cautious optimism among investors.

Copyright Mettis Link News