Asia-Pacific Markets Drop as Trump’s Iran Threat Lifts Oil Above $110

Asia-Pacific equity markets fell sharply on Monday after U.S. President Donald Trump issued a blunt warning to Iran over the weekend, CNBC reported. The remarks reignited fears of fresh disruptions to global crude supply and pushed oil prices higher by more than 1%.

Trump’s Iran Warning Shakes Investor Confidence

In a post on Truth Social on Sunday, Trump declared that “the Clock is Ticking” for Iran. He warned that there “won’t be anything left” if action was not taken soon. The post offered no specifics on demanded steps or threatened consequences. The ambiguity was enough to unnerve traders across the region.

International benchmark Brent crude futures for July climbed 1.34% to $110.72 per barrel. U.S. West Texas Intermediate futures for June rose 1.75% to $107.26 per barrel.

Regional Markets Take the Hit

South Korea’s Kospi and the small-cap Kosdaq bore the worst of the selloff, each dropping more than 2%. Australia’s S&P/ASX 200 lost 0.76%. Japan’s Nikkei 225 fell around 0.2%, though the broader Topix managed a slight 0.1% gain. Hong Kong’s Hang Seng index futures pointed to a lower open, trading below the previous close of 25,962.73.

Japanese government bond yields added to the pressure. The 10-year yield jumped over 8 basis points to 2.785%, extending a broader global bond selloff tied to mounting inflation concerns.

Background: A Fragile Standoff Since April

Washington and Tehran have been locked in an uneasy standoff since a tentative ceasefire in early April. The U.S. has maintained a blockade on Iranian ports throughout that period. Iran, for its part, has kept the Strait of Hormuz closed since the conflict began. That chokepoint handles a significant share of global seaborne oil traffic, making any escalation acutely sensitive for energy markets.

Also Read: Oil Markets Brace for Strait of Hormuz Risk

Wall Street Futures Steady, But Last Week Stung

U.S. equity futures held near the flatline heading into Monday’s session. Dow Jones Industrial Average futures slipped roughly 100 points, while S&P 500 and Nasdaq-100 futures were little changed. Last Friday’s session was notably weak. The S&P 500 dropped 1.24% to close at 7,408.50. The Nasdaq Composite fell 1.54% and the Dow lost more than 537 points. Technology stocks led the decline, with Intel, Advanced Micro Devices, Micron Technology, and Nvidia all posting losses of between 4% and 7%. Newly listed Cerebras Systems gave back 10% after surging 68% on its debut.

Investors are now watching Nvidia’s quarterly results and key U.S. retail earnings for the next major catalyst.

Also Read: Nvidia Earnings Preview and What Analysts Expect

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