Global Market Today: Asian shares open lower, oil slips on Iran deadline extension

Synopsis

President Trump's decision to extend the deadline for Iran has offered a temporary reprieve, boosting US equity futures and easing oil prices slightly. Despite this, global markets remain volatile due to ongoing geopolitical tensions and the continued closure of the Strait of Hormuz, impacting oil flows and inflation fears. Investors await further developments on a potential peace deal.

A selloff on Wall Street extended to Asia as traders stayed cautious even after President Donald Trump again delayed his deadline for Iran to reach a deal. Crude oil slipped.

Asian shares fell over 1% after both US benchmarks slid to the lowest level since September on Thursday. Technology stocks continued their selloff with South Korea — a poster child for artificial intelligence investments — slumping 4.1%.

S&P 500 Top Gainers

Valero Energy248.14(5.80%)

Best Buy Co63.21(4.65%)

Gartner156.60(4.24%)

Occidental Petroleum64.36(4.06%)

S&P 500 Top Losers

AppLovin391.21(-10.41%)

Lam Research211.62(-9.35%)

Arista Networks122.55(-9.23%)

Lennox Intl438.30(-9.01%)

Sentiment had improved at the start of Friday with Brent crude falling as much as 2% and US equity-index futures rising 0.5% following Trump’s 10-day extension to the deadline for Iran to strike a deal with the US or face more attacks. Those gains pared after the Wall Street Journal reported the Pentagon is looking at sending up to 10,000 additional ground troops to the Middle East.

Brent was just 0.8% down, trading around $107 a barrel and US equity-index futures pared gains to around 0.2%. The commodity, which has stayed volatile this week with losses typically followed by gains the following day, is still up more than 70% this year.

The moves extend a month of war-driven swings, underscoring how geopolitical tensions continue to buffet markets, leaving investors uncertain whether hostilities are set to ease or escalate. Traders are closely watching the Strait of Hormuz, a key waterway for Middle East oil flows that remains effectively shut, driving crude oil higher and adding to inflation pressures.

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“By extending the deadline, it effectively kicks the can down the road, pushing back any concrete resolution regarding the reopening of the Strait of Hormuz,” Tony Sycamore, a market analyst at IG Australia, wrote in a note. “This, in turn, simply extends the uncertainty weighing on markets and the broader global economy.”

Trump again pushed back his deadline for Iran, saying talks with the country were going “very well.” The US president said he would also extend his pledge to refrain from attacks on Iranian energy sites, offering a brief calm to global energy markets jolted by the conflict.

Earlier, Trump had threatened Iran with intensified military action after Tehran rejected Washington’s push for a peace deal, with the two sides far apart in efforts to end the war. Until Iran agree to stop the conflict, the US will “keep blowing them away,” the American president said.

Iran responded to the ceasefire proposal through intermediaries, the semi-official Tasnim news agency reported, and is now awaiting a reply. Tehran has a string of conditions for ending the conflict, one of which is a guarantee that the US and Israel won’t resume their attacks.

The markets were caught off guard by the initial US and Israeli strikes at the end of February, which came in the middle of talks that were ostensibly going well but were accompanied by a huge US military build up in the Middle East, Kyle Rodda at Capital.com wrote in a note.

“The current situation looks very similar, with markets positioning for a potential weekend escalation,” he wrote.

In other corners of the market, a Bloomberg gauge of the dollar edged 0.1% lower on Friday, while gold advanced. The yen held its losses from the previous session, trading around 159.65 a dollar. Bitcoin edged lower, trading below $69,000.

Meanwhile, Treasury Secretary Scott Bessent said a US insurance program meant to boost shipping through the Strait will begin soon, a move that may help revive flows of much of the world’s oil and gas supplies.

The conflicting messages about the Middle East have kept traders cautious even as energy prices have surged since the US and Israel began a bombing campaign in Iran almost a month ago.

Brent, the global crude benchmark is on pace for a monthly gain of almost 50% as the conflict engulfs the energy-rich Middle East and sends shockwaves through the global economy. The near-total closure of Hormuz has meant millions of barrels of lost daily oil output, while supercharging product prices from diesel to jet fuel.

“The war in Iran and the resulting surge in oil prices continue to dampen risk appetite,” said Adam Turnquist at LPL Financial. “Any sustainable market recovery will require meaningful progress toward a peace agreement and a reopening of the Strait of Hormuz.”

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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

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