Japan, South Korea stocks open higher as investors assess Trump's Iran war comments, extended deadline
Why it matters: President Trump's Tuesday 8 P.M. ET deadline for Iran to reopen the Strait of Hormuz could trigger attacks on Iranian infrastructure.
- President Trump issued new threats to attack Iran's power plants and civilian infrastructure starting Tuesday if Tehran fails to fully reopen the Strait of Hormuz, following an expletive-laden social media post vowing "Hell" (news story).
- Iran pushed back against Trump's ultimatum, stating the Strait of Hormuz would only reopen fully after war damage is compensated, and continued strikes on economic targets like Kuwait's oil headquarters (news story).
- Japan's Nikkei 225 jumped 0.62% and South Korea's Kospi advanced 1.8% as investors assessed the Middle East conflict, while many other Asian markets were closed for holidays (news story).
- U.S. West Texas Intermediate (WTI) for May was up 2.57% at $114.11 per barrel, and Brent crude gained 2.62% to $111.65 per barrel, reflecting rising war rhetoric and looming deadlines (news story, ZeroHedge, Axios).
- Wall Street stock futures tumbled overnight, with Dow Jones Industrial Average futures shedding 253 points (0.5%), as investors eyed developments in the U.S.-Iran war and oil prices (news story, ZeroHedge).
- OPEC and allies raised their production quotas by 206,000 barrels per day for May, a largely symbolic move given war-constrained shipments (news story).
- Oil markets are expressing doubt about Trump’s peace signals as tensions with Iran grow, despite his rhetoric (NYT Business, Axios).
- Delta is kicking off an earnings season heavily focused on surging gas prices and the Iran war's impact (MarketWatch).
- Trump’s victory rhetoric is undercut by reports of a downed U.S. jet in Iran, adding nuance to the conflict narrative (Japan Times).
Despite escalating threats from President Trump to attack Iranian infrastructure by Tuesday, and Iran's retaliatory strikes on Gulf targets, Asian markets like Japan's Nikkei 225 (+0.62%) and South Korea's Kospi (+1.8%) opened higher, while Western futures tumbled. Oil prices surged, with WTI up 2.57% to $114.11 per barrel, as investors grappled with mixed signals about the war's future and an extended deadline for Iran to reopen the Strait of Hormuz.
