Asian markets open higher amid Iran U.S. escalation

July 23, 2026 (MLN): Asian markets traded higher on Thursday, with investors weighing escalating tensions between the United States and Iran while gearing up for another round of corporate earnings.

Japan's Nikkei 225 gained 0.55%, while the Topix advanced 0.22%. South Korea's Kospi surged 2.3% at the open and the small-cap Kosdaq climbed 1.42%. Australia's benchmark S&P/ASX 200 also rose 0.72%, according to CNBC.

Oil prices extended gains after a tanker was struck by an unidentified projectile off the coast of Saudi Arabia and U.S. President Donald Trump threatened to target Iranian infrastructure if attacks on shipping continue.

Brent crude for September delivery climbed 2% to $95.99 per barrel, while U.S. West Texas Intermediate (WTI) crude rose about 1.7% to $88.27 per barrel.

Market sentiment remained focused on developments in the Middle East after Trump warned that the U.S. would respond by striking Iranian bridges or power plants whenever Iran attacks ships in the Strait of Hormuz.

The remarks followed the collapse of the Iran-U.S. ceasefire and the deaths of three American service members.

According to Hardika Singh, economic strategist at Fundstrat, the absence of major earnings releases has shifted investors' attention back to geopolitical risks.

She noted that the renewed rise in oil prices is forcing markets to reassess inflation expectations, making companies' pricing power increasingly important for investors.

Investors are also awaiting another busy earnings session, with Dow, American Airlines, T-Mobile, Union Pacific, and Norfolk Southern scheduled to report before the U.S. market opens, while Intel is set to release its results after the closing bell.

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