Trump Threats Prompt Asian Stock Gains, Oil Prices Drop
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- President Trump warned that the U.S. would attack Iran's power plants and civilian infrastructure starting Tuesday unless Tehran fully reopens the Strait of Hormuz, and set a Tuesday 8 P.M. Eastern Time deadline for a deal.
- Trump announced a press conference with the military at the Oval Office at 1 p.m. on Monday to discuss the Iran issue.
- Iran rejected the ultimatum, saying the Strait of Hormuz would only fully reopen after war damage is compensated, and continued strikes on Gulf economic and infrastructure targets.
- Japan's Nikkei 225 rose 0.55% to 53,413.68, while South Korea's Kospi and India's Nifty 50 also posted gains.
- OPEC and allies raised May production quotas by 206,000 barrels per day, a move described as largely symbolic amid war‑related shipment constraints.
- West Texas Intermediate crude fell about 2% to $109.3 per barrel, and Brent crude dropped more than 1% to $107.8 per barrel.
- Wall Street futures for the S&P 500 and Nasdaq‑100 rose modestly (0.22% and 0.42% respectively), while Dow Jones futures were flat (up 0.04%).
Why it matters: Asian equity investors captured gains as the Nikkei and Kospi rallied, while oil exporters faced price drops of roughly 2% after OPEC’s modest output increase. The heightened geopolitical tension from Trump’s Iran ultimatum kept risk assets volatile, limiting broader market optimism.
