07.04.2026 04:59

Asian equity markets opened the day with mixed performance, echoing the direction of U.S. stock‑index futures. Investors remain uneasy as President Donald Trump’s ultimatum for Iran to reopen the Strait of Hormuz looms. At the moment, Japan’s Nikkei 225, Thailand’s SET Index, Indonesia’s IDX Composite, and Malaysia’s KLCI are under modest selling pressure, whereas South Korea’s Kospi and Australia’s S&P/ASX 200 are posting slight gains.

Trump’s increasingly belligerent language toward Tehran has escalated tensions; he warned that if the Tuesday 8 p.m. Eastern deadline passes without an agreement, American forces could target civilian infrastructure. Tehran, however, has rebuffed calls to reopen the crucial waterway and dismissed a proposed ceasefire, demanding instead a permanent end to hostilities. This standoff raises the specter of a broader Middle‑East flare‑up, prompting risk‑averse investors to stay on the sidelines.

Meanwhile, the geopolitical turmoil has lifted crude‑oil prices to a four‑week high, rekindling inflation worries and strengthening the case for further tightening by central banks worldwide. Traders are already factoring in the likelihood of a U.S. Federal Reserve rate hike before year‑end, a prospect that dampens market optimism and could restrain bullish momentum.

All eyes now turn to Friday’s U.S. consumer‑price report, which will incorporate data from the period of the Middle‑East crisis. The inflation reading will help market participants gauge how soaring oil prices are feeding price pressures. Yet, despite the impending data release, the primary focus remains fixed on diplomatic developments; hopes of a last‑minute deal between Washington and Tehran are fading. Should negotiations collapse, a new phase of U.S. military involvement appears increasingly probable.