Asian stocks rebound as oil retreats after Trump comments on Iran war

Asian equity markets rally on easing oil shock

Major Asian indices advanced across the region. Japan’s Nikkei 225 rose 2.67–2.68% to 54,138–54,144, while South Korea’s KOSPI jumped 5.52% to 5,541.75. In Greater China, Hong Kong’s Hang Seng Index gained 1.87% to 25,881–25,884 and the Shanghai Composite added 0.46% to 4,115. Taiwan’s main index increased 2.06% to 32,771.87.

In Australia, the ASX 200 climbed 1.09% to 8,692.6. The broad-based recovery was linked to relief that the recent surge in oil prices might prove temporary after Trump forecast lower prices.

Oil prices fell more than 6% from recent highs above $100 per barrel to around $88–89 per barrel following Trump’s remarks that the Iran war would end “very soon.” The pullback in crude eased pressure on energy-importing economies and helped stabilize risk sentiment after recent volatility.

Geopolitical tensions and mixed signals on oil supply

Despite the market rebound, geopolitical uncertainty persisted. Iran’s Revolutionary Guards rejected Trump’s signals of a rapid de-escalation, stating that the oil blockade would continue until attacks end, underscoring ongoing risks around Middle East supply disruptions and the duration of the conflict.

Trump also held discussions with Russian President Vladimir Putin about war and peace, as the United States weighed potential easing of sanctions on Russian oil. These parallel developments added complexity to the outlook for global energy markets and future price dynamics.

China released trade data indicating continued resilience, providing a supportive backdrop for regional risk assets alongside the relief in oil prices. However, analysts cautioned that geopolitical risks remained elevated.

Market volatility stayed above historically low levels, with the VIX volatility index at 25.50. U.S. equity futures were slightly weaker in early Asian trading, with US 30 futures down 0.18% and US 500 futures down 0.17%, suggesting some investor caution despite the rebound in Asia.

FAQ

Which Asian markets recorded the strongest gains?
The KOSPI in South Korea posted the strongest gain, rising 5.52%, followed by Taiwan’s index, which increased 2.06%, and Japan’s Nikkei 225, which advanced 2.67–2.68%.

How far did oil prices fall?
Crude oil prices fell more than 6% from highs above $100 per barrel to around $88–89 per barrel after Trump suggested the Iran war could end soon and predicted lower oil prices.

What was the level of market volatility?
The VIX volatility index stood at 25.50, indicating elevated but not extreme levels of market volatility.

How did U.S. stock futures trade during Asian hours?
In early Asian trading, US 30 futures were down 0.18% and US 500 futures were down 0.17%.