Daijiworld Media Network - Tokyo

Tokyo, May 26: Asian stock markets traded mixed on Tuesday after the United States military said it carried out “self-defense” strikes in southern Iran targeting missile launch sites and boats allegedly placing mines.

The strikes came even as US President Donald Trump said on social media that negotiations to end the conflict were “proceeding nicely,” adding to uncertainty in global financial markets.

US futures surged following the developments, while oil prices showed volatility. Brent crude rose but remained below $100 per barrel, while US benchmark crude declined sharply.

Markets across Asia reacted cautiously amid shifting geopolitical signals and conflicting statements on peace talks between Washington and Tehran.

Japan’s Nikkei 225 fell 0.3 per cent, while Hong Kong’s Hang Seng index rose 0.4 per cent. China’s Shanghai Composite declined 0.2 per cent. South Korea’s Kospi surged 2.6 per cent, recovering after a holiday break, while Australia’s S&P/ASX 200 dropped 0.4 per cent.

Analysts said markets were being driven by uncertainty over Iran negotiations and possible outcomes related to energy supply routes, particularly the Strait of Hormuz, a key global oil transit point.

Brent crude traded at around $95.47 a barrel after sharp fluctuations, while US crude dropped to $91.95. Currency markets also saw movement, with the US dollar strengthening against the Japanese yen and euro.

Experts noted that investor sentiment remained highly sensitive to developments in the Middle East, with oil markets and equities reacting sharply to each new signal from political leaders and military reports.