Markets / Geopolitics
Asia-Pacific markets slide as Iran accuses the U.S. of breaking fragile ceasefire
Markets across the region fell Thursday after Iran’s parliamentary speaker charged Washington with violating the terms of a newly announced two-week pause in hostilities — casting a shadow over what had briefly looked like a breakthrough in the month-long Iran-U.S. war.
A ceasefire announced — then immediately questioned
On Wednesday, President Trump posted on Truth Social that he had agreed to suspend attacks on Iran for two weeks, describing the arrangement as “double sided.” The ceasefire was tied to a key condition: Iran agreeing to reopen the Strait of Hormuz, the narrow chokepoint through which roughly 20% of the world’s oil supply flows. Iran’s Foreign Minister indicated Tehran would halt its “defensive” operations if attacks on Iranian soil stopped. Israel also reportedly signed on.
“We received a 10-point proposal from Iran, and believe it is a workable basis on which to negotiate.” — Donald Trump, Truth Social
Iran cries foul — before the ink dried
The optimism didn’t last long. Iran’s parliamentary speaker, Mohammed Bagher Ghalibaf, quickly accused the U.S. of violating the agreement. His list of grievances included Washington’s refusal to acknowledge Iran’s right to enrich uranium, Israel’s continued strikes on Lebanon, and a drone that reportedly entered Iranian airspace. The accusations injected fresh uncertainty into markets that had rallied the night before on ceasefire hopes.
Asia-Pacific market snapshot
| Index | Close | Change |
|---|---|---|
| Nikkei 225 | 55,895.32 | -0.73% |
| Topix | 3,741.47 | -0.90% |
| Kospi | 5,778.01 | -1.61% |
| Kosdaq | 1,076.00 | -1.27% |
| CSI 300 | 4,566.22 | -0.64% |
| Hang Seng Index | 25,752.40 | -0.71% |
| Nifty 50 | 23,743.50 | -0.89% |
| BSE Sensex | — | -0.96% |
| ASX 200 | 8,973.20 | +0.24% |
Australia’s ASX 200 was the lone bright spot across the region, edging 0.24% higher while every other major index closed in the red. South Korea’s Kospi was the hardest hit, falling 1.61%.
Oil jumps — the Strait of Hormuz factor
Oil prices surged on Thursday morning, with Brent crude for June delivery rising 3.1% to $97.76 and U.S. West Texas Intermediate for May climbing 3.2% to $97.44. The Strait of Hormuz remains central to the conflict — Iran’s ability to disrupt shipping through the waterway has been a key pressure point since fighting began five weeks ago, sending energy prices sharply higher.
Wall Street surged overnight — but futures wobble
The ceasefire announcement had sent U.S. stocks surging on Wednesday, in what was the Dow’s best single-day gain since April 2025 — when Trump first pulled back from his most aggressive tariff positions. The Dow Jones Industrial Average closed up 1,325 points (2.85%) at 47,909.92. The S&P 500 gained 2.51% to close at 6,782.81, and the Nasdaq Composite jumped 2.80% to 22,635.00.
But Thursday morning told a different story: S&P 500 futures, Nasdaq 100 futures, and Dow futures each slipped roughly 0.3%, reflecting renewed jitters over whether the ceasefire would hold.
India flags inflation risks from the war
India’s central bank weighed in separately on Wednesday, warning that the prolonged conflict was already feeding inflationary pressures while also clouding the outlook for economic growth. India’s Nifty 50 and BSE Sensex both fell close to 1% on Thursday morning.
Reporting contributed by Sarah Min, John Melloy, and Lisa Kailai Han.
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