Stock Selloff Eases as Futures Rise, Oil Slips: Markets Wrap
(Bloomberg) — The biggest monthly selloff in global stocks since 2022 moderated after the US gave Iran more time to reach a deal on ending the month-long war. Oil edged lower.
Asian shares pared initial declines to be down 0.4% and equity-index futures for the US and Europe both rose after US President Donald Trump delayed his deadline for Iran to agree to a ceasefire deal by 10 days. His comments came after Wall Street gauges sank to their lowest level since September amid skepticism about the US-Iran talks.
The MSCI All Country World Index still headed for its worst month in more than three years as the Middle East conflict stokes concerns about quicker inflation and lower economic growth. Some of those worries eased as Brent slipped 0.7% to about $107 a barrel on Friday, putting the commodity on course for its first weekly decline since mid February.
Sentiment remained fragile. Some of the early optimism was damped after the Wall Street Journal reported the Pentagon is looking at sending up to 10,000 additional ground troops to the Middle East.
The latest bout of whipsaw trading extends a month of war-driven swings, with investors uncertain about whether hostilities are set to ease or escalate. Traders are closely watching the Strait of Hormuz, a key waterway for Middle East oil flows that remains effectively shut, driving crude oil higher and adding to inflation pressures.
“By extending the deadline, it effectively kicks the can down the road, pushing back any concrete resolution regarding the reopening of the Strait of Hormuz,” Tony Sycamore, a market analyst at IG Australia, wrote in a note. “This, in turn, simply extends the uncertainty weighing on markets and the broader global economy.”
Trump said talks with Iran were going “very well.” He also said he would extend his pledge to refrain from attacks on the country’s energy sites, offering a brief calm to global energy markets jolted by the conflict.
Iran responded to the ceasefire proposal through intermediaries, the semi-official Tasnim news agency reported, and is now awaiting a reply. Tehran has a string of conditions for ending the conflict, one of which is a guarantee that the US and Israel won’t resume their attacks.
The markets were caught off guard by the initial US and Israeli strikes at the end of February, which came in the middle of talks that were ostensibly going well, but were accompanied by a huge US military buildup in the Middle East, Kyle Rodda at Capital.com wrote in a note.
“The current situation looks very similar, with markets positioning for a potential weekend escalation,” he said.
What Bloomberg’s Strategists Say…
“Regional bonds are under intensifying pressure amid concerns over the potential for escalation in the Iran war. With bonds, currencies, and equities now selling off in tandem across the region, investors are left with few places to hide as the de-risking move accelerates into the weekend.”
— David Savage, Macro Squawk. Click here for the full analysis.
Asia’s benchmark share index has dropped more than 10% this month, while gold slumped about 16%. Brent crude has jumped about 47% since the war started at the end of February.
Higher oil prices have fueled inflation concerns, raising the prospect that policymakers may keep interest rates elevated or even tighten further. That’s reflected in Treasuries, with the benchmark 10-year note yielding 4.42% on Friday, up about 48 basis points from its Feb. 27 close.
In other corners of the market, a Bloomberg gauge of the dollar edged 0.1% lower on Friday. The yen strengthened against the dollar after Finance Minister Satsuki Katayama said the authorities can take measures against foreign-exchange moves, including bold actions. Bitcoin traded around $69,000.
Meanwhile, Treasury Secretary Scott Bessent said a US insurance program meant to boost shipping through the Strait of Hormuz will begin soon, a move that may help revive flows of much of the world’s oil and gas supplies. The near-total closure of the waterway has meant millions of barrels of lost daily oil output, while pushing up product prices from diesel to jet fuel.
“The war in Iran and the resulting surge in oil prices continue to dampen risk appetite,” said Adam Turnquist at LPL Financial. “Any sustainable market recovery will require meaningful progress toward a peace agreement and a reopening of the Strait of Hormuz.”
Corporate News:
Pernod Ricard SA and Brown-Forman Corp., the owner of Jack Daniel’s whiskey, are discussing a merger as the alcoholic drink companies look at ways to consolidate amid an industry downturn. Meituan expects losses per delivery order to start narrowing in the current quarter, as Chinese officials rein in its intense competition with Alibaba Group Holding Ltd. and JD.com Inc. Apple Inc. plans to open Siri to outside artificial intelligence assistants, a major move aimed at bolstering the iPhone as an AI platform. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.4% as of 1:44 p.m. Tokyo time Nikkei 225 futures (OSE) were little changed Japan’s Topix rose 0.3% Australia’s S&P/ASX 200 fell 0.2% Hong Kong’s Hang Seng rose 0.5% The Shanghai Composite rose 0.3% Euro Stoxx 50 futures rose 0.5% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1543 The Japanese yen rose 0.1% to 159.59 per dollar The offshore yuan was little changed at 6.9184 per dollar Cryptocurrencies
Bitcoin fell 0.6% to $68,538.54 Ether fell 0.6% to $2,051.57 Bonds
The yield on 10-year Treasuries was little changed at 4.42% Japan’s 10-year yield advanced seven basis points to 2.345% Australia’s 10-year yield advanced nine basis points to 5.10% Commodities
West Texas Intermediate crude fell 0.7% to $93.79 a barrel Spot gold rose 1.5% to $4,441.71 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Sarah Chen.
©2026 Bloomberg L.P.
