Asian Equities, Oil Prices Mixed as Investors Parse Middle East Developments

By Ronnie Harui

Asian equity markets and oil prices are mixed early Tuesday as investors parsed developments in the Middle East.

The U.S. attacked targets in southern Iran on Monday in what American military officials described as defensive strikes. The attack came amid ongoing talks between the two countries to end their conflict.

The U.S. sank two boats that were laying mines belonging to Iran's Islamic Revolutionary Guard Corps, a senior U.S. official said. Then, Iran started shooting surface-to-air missiles at U.S. warplanes, which led the U.S. to attack a missile launch site near Bandar Abbas, the official said.

Progress toward a deal to end the U.S.-Iran conflict slowed Monday as both sides remained entrenched over references to Iran's nuclear program and financial relief for Tehran.

Equity markets across the Asia-Pacific were mixed. Japan's Nikkei Stock Average declined 0.3% and Australia's S&P/ASX 200 benchmark index fell 0.7%, while South Korea's Kospi rose 3.3%.

"The dominant theme entering [Tuesday]'s session will likely revolve around the U.S.-Iran deal narrative," UOB's Global Economics & Markets Research team said in a report. "So key risks for today will be any reversal or complication in U.S.-Iran cease-fire talks," the team added.

Crude oil futures were also mixed. Front-month West Texas Intermediate crude oil futures fell 5.2% to $91.55 per barrel, while front-month Brent crude oil futures rose 1.7% to $97.80 a barrel, ICE data showed.

Gold edged lower with spot gold down 0.2% at $4,559.43 an ounce.

In the foreign exchange markets, Asian currencies consolidated in thin trade after the holidays in the U.S. and U.K.

Risks to a potential U.S.-Iran deal remain elevated, two strategists of OCBC Group Research said in a note. "We think [the dollar's] downside will be constrained. The U.S. remains a relative growth outperformer, supported by the AI investment cycle," they added.

The dollar edged 0.2% lower to 1,509.70 won, but was little changed at 1.2767 Singapore dollars, while the Australian dollar was down 0.1% at US$0.7166.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

May 25, 2026 21:31 ET (01:31 GMT)