Asia markets rise on U.S. Iran deal hopes

April 14, 2026 (MLN): Asian markets opened on a positive note on Tuesday, buoyed by cautious optimism that a diplomatic breakthrough between the United States and Iran remains possible, even as tensions escalate in the Strait of Hormuz following fresh U.S. restrictions on Iranian shipping.

Investor sentiment across the Asia-Pacific region improved despite the increasingly fragile ceasefire between Washington and Tehran.

While the truce has not been formally abandoned, both sides have accused each other of breaching its terms, raising concerns over prolonged geopolitical instability, according to CNBC.

The United States on Monday initiated measures to block vessels from entering or exiting Iranian ports via the strategically critical Strait of Hormuz, intensifying pressure on Tehran after peace negotiations stalled.

The move, which came into effect at 10 a.m. ET, aims to force Iran to reopen key oil transit routes.

Iranian authorities reacted sharply, warning that the blockade could trigger a surge in global energy prices. Parliamentary Speaker Mohammad Bagher Ghalibaf cautioned that fuel prices could rise significantly, suggesting current levels may soon appear relatively low.

Oil markets, however, showed some pullback during late trading hours.

West Texas Intermediate (WTI) crude slipped 2.02% to settle at $97.08 per barrel, while Brent crude declined 1.33% to $98.04 per barrel, reflecting uncertainty over near-term demand and supply dynamics.

Among regional equities, South Korea led gains, with the Kospi index surging 3.41%, while the small-cap Kosdaq rose 2.13%. Japan’s Nikkei 225 climbed 2.34%, and the broader Topix index added 0.8%, supported by improved global risk appetite.

China’s mainland CSI300 index advanced 0.84%, while Hong Kong’s Hang Seng index pared early gains but still closed 0.36% higher.

However, fresh economic data from China indicated slowing export momentum, with outbound shipments rising just 2.5% year-on-year in March well below market expectations and significantly down from the strong growth recorded earlier in the year.

The slowdown shows rising input costs, particularly energy and commodities, amid Middle East supply disruptions. Meanwhile, imports recorded their fastest growth in over four years, signaling resilient domestic demand.

Australia’s S&P/ASX 200 edged up 0.36%, even as business confidence weakened in March due to concerns over the global oil shock triggered by escalating Iran-related tensions, according to a survey by National Australia Bank.

In contrast, India’s Nifty 50 underperformed regional peers, declining 0.86% amid cautious investor positioning.

On Wall Street, futures indicated a subdued start following Monday’s strong rally. S&P 500 futures inched up 0.06%, Dow Jones Industrial Average futures gained 10 points, and Nasdaq-100 futures rose nearly 0.2%.

U.S. equities had closed higher in the previous session, driven by hopes of a potential diplomatic resolution. The S&P 500 climbed 1.02% to 6,886.24, marking its highest close since the onset of the conflict.

The Nasdaq Composite advanced 1.23% to 23,183.74, while the Dow Jones Industrial Average added 301.68 points, or 0.63%, to settle at 48,218.25.

Overall, markets remain highly sensitive to developments in the Middle East, with investors balancing geopolitical risks against expectations of a possible U.S. Iran agreement that could stabilize global energy markets.

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