{"id":49496,"date":"2026-05-28T11:36:53","date_gmt":"2026-05-28T11:36:53","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/28\/asian-markets-slide-as-iran-tensions-lift-oil-prices-and-bond-yields\/"},"modified":"2026-05-28T11:36:53","modified_gmt":"2026-05-28T11:36:53","slug":"asian-markets-slide-as-iran-tensions-lift-oil-prices-and-bond-yields","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/28\/asian-markets-slide-as-iran-tensions-lift-oil-prices-and-bond-yields\/","title":{"rendered":"Asian markets slide as Iran tensions lift oil prices and bond yields"},"content":{"rendered":"
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Share markets across Asia fell on Thursday after reports of fresh US military strikes on Iran and missile attacks linked to Kuwait unsettled investors and weakened optimism surrounding a possible peace agreement in the Middle East.<\/p>\n

Oil prices surged while Treasury yields climbed as investors reacted to escalating tensions and growing concerns over inflation ahead of key US economic data.<\/p>\n

The renewed hostilities added to the uncertainty surrounding peace negotiations after US President Donald Trump dismissed an Iranian report suggesting a deal had been reached to resume traffic through the Strait of Hormuz.<\/p>\n

Oil prices rebound sharply<\/h2>\n

The US military said it had carried out fresh strikes targeting an Iranian drone operation. <\/p>\n

Tehran, meanwhile, claimed it had attacked a US air base in Kuwait.<\/p>\n

With shipping through the Strait of Hormuz still heavily disrupted, oil prices rebounded sharply.<\/p>\n

Brent crude rose 3.6% to $97.71<\/a> a barrel, while US crude climbed 3.8% to $92.05.<\/p>\n

The jump in oil prices added to concerns that inflation could remain elevated for longer, pushing Treasury yields higher.<\/p>\n

Yields on 10-year US Treasury notes rose 4 basis points to 4.526% as investors adjusted inflation expectations higher due to sustained energy price risks.<\/p>\n

The rise in yields also weighed on equity markets, particularly technology stocks that had previously led gains.<\/p>\n

Japan’s Nikkei index fell 1.4%, while South Korean shares dropped 3.2%. <\/p>\n

MSCI\u2019s broadest index of Asia-Pacific shares outside Japan declined 2.1%.<\/p>\n

Reports from Japan also indicated the government planned to issue bridging bonds to finance key programmes aimed at boosting investment and economic security.<\/p>\n

European and US futures weaken<\/h2>\n

Market weakness extended into Europe and the United States.<\/p>\n

EUROSTOXX 50 futures fell 1.2%, FTSE futures dropped 0.9%, and DAX futures declined 1.0%.<\/p>\n

In the United States, S&P 500 futures eased 0.3%, while Nasdaq futures lost 0.8%.<\/p>\n

Inflation data in focus<\/h2>\n

Investor attention has now shifted to upcoming US personal consumption expenditures (PCE) data, which includes the Federal Reserve\u2019s preferred inflation measures.<\/p>\n

Higher fuel costs are expected to push headline PCE inflation to a three-year high of 3.8%. <\/p>\n

Core inflation is forecast to rise 0.3% monthly, lifting the annual rate to 3.3%, remaining well above the Fed\u2019s 2% target.<\/p>\n

The rise in inflation expectations has prompted some Federal Reserve officials to reconsider the central bank\u2019s easing stance.<\/p>\n

“With inflation well above target but the growth impact of the conflict still uncertain, the Fed faces genuine \u2060two-sided risk,” analysts at NAB said in a note.<\/p>\n

Markets are currently pricing in a 50-50 chance of a quarter-point increase in the federal funds rate to a range of 3.75% to 4.0% by the end of the year.<\/p>\n

Dollar strengthens as gold declines<\/h2>\n

Expectations of higher US interest rates supported the dollar, which traded at 99.506 against a basket of currencies.<\/p>\n

The dollar also climbed to a four-week high <\/a>against the Japanese yen at 159.65, approaching the 160 level that previously triggered intervention from Japanese authorities.<\/p>\n

The euro fell 0.3% to $1.1590, though expectations of a possible interest rate increase by the European Central Bank offered some support to the common currency.<\/p>\n

ECB Chief Economist Philip Lane said policymakers remained focused on preventing higher energy prices from feeding into broader inflation expectations.<\/p>\n

Meanwhile, gold prices fell <\/a>to $4,374 an ounce despite geopolitical tensions, suggesting limited demand for the metal as either a safe-haven asset or an inflation hedge.<\/p>\n

The post Asian markets slide as Iran tensions lift oil prices and bond yields<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Share markets across Asia fell on Thursday after reports of fresh US military strikes on Iran and missile attacks linked to Kuwait unsettled investors and weakened optimism surrounding a possible peace agreement in the Middle East. Oil prices surged while Treasury yields climbed as investors reacted to escalating tensions and growing concerns over inflation ahead <\/p>\n","protected":false},"author":1,"featured_media":49497,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-49496","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49496"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49497"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}