Asia markets rally on hopes of U.S. Iran talks

March 25, 2026 (MLN): Asian markets staged a strong rally on Wednesday, led by gains in Kospi, as easing geopolitical concerns boosted investor sentiment following remarks by Donald Trump suggesting potential negotiations with Iran.

During comments from the Oval Office, Trump indicated that Washington and Tehran were “in negotiations,” hinting that Iran may be open to a peace arrangement.

He also noted that the U.S. had paused plans to target Iranian energy infrastructure due to ongoing discussions.

However, Iranian officials have denied the existence of any direct talks with the U.S., keeping some uncertainty in the backdrop, according to CNBC.

In regional market performance, South Korea’s benchmark Kospi surged 3%, while the tech-heavy Kosdaq advanced 3.18%.

Elsewhere, Australia’s S&P/ASX 200 climbed 2%, reflecting broad-based buying interest. Japan’s Nikkei 225 rose 2.88%, with the broader Topix gaining 2.4%.

In Greater China, Hong Kong’s Hang Seng Index added 1.14%, while mainland China’s CSI 300 posted a modest gain of 0.67%.

Oil markets, meanwhile, moved sharply lower during early Asian trading hours amid hopes of de-escalation.

International benchmark Brent crude dropped nearly 6% to $98.31 per barrel, while West Texas Intermediate declined around 5% to $87.65 per barrel.

Overnight in the U.S., equity futures pointed higher despite a mixed close in the previous session. Futures tied to the S&P 500 and Nasdaq 100 gained 0.7% and 0.8%, respectively, while Dow Jones Industrial Average futures rose by 318 points.

The upbeat futures came after a slight pullback on Wall Street, where rising crude prices and prolonged geopolitical tensions weighed on sentiment.

The S&P 500 slipped 0.37% to close at 6,556.37, while the Dow Jones Industrial Average declined 0.18% to 46,124.06. The tech-heavy Nasdaq Composite underperformed, falling 0.84% to settle at 21,761.89.

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