Trump drops Iran deal push, oil jumps and Asian markets diverge

what happened

According to dpa-AFX, citing RTTNews, Asian stock markets trade mixed on Friday after a weak session on Wall Street. Crude oil prices spiked after U.S. President Donald Trump said Washington is no longer interested in a deal to end the war with Iran. Trump halted the negotiation track that Vice President Vance had been advancing and signaled he may use military force if U.S. allies and ships come under threat. The Strait of Hormuz, shut by Iran since the start of the war, now sees shipping traffic down to single digits.

The Nikkei 225 rose 1.64 percent, while Taiwan and South Korea gained 2.6 and 1.3 percent on a rebound in chip stocks. The Australian S&P/ASX 200 fell 0.66 percent, with miners and gold producers weighing on the index. The dollar traded in the higher 159 yen range. On Wall Street, the Nasdaq lost 0.4 percent, while the S&P 500 and Dow Jones each fell 0.4 percent on Thursday.

why it matters

The main risk for markets is supply disruption through the Strait of Hormuz. With Iran refusing to let enriched nuclear material leave and the U.S. maintaining its blockade of Iranian ports, inflation concerns are returning, which could limit expectations for rate cuts and support the dollar.

market impact

Oil: fears of supply disruption through Hormuz push Brent and WTI higher

• ▲WTI pressure up — risk of prolonged supply disruption from Iran and the Strait of Hormuz
• ↔Gold mixed — rising inflation worries compete with expectations of tighter Fed policy

instruments

on polymarket