Stock Selloff Extends as Iran Conflict Drags On: Markets Wrap
(Bloomberg) — A global equity selloff stretched into a second day as initial optimism over the US delaying its deadline for Iran to reach a deal faded. Crude oil declined.
Asia’s benchmark share index fell 0.8% after Wall Street gauges slid to the lowest level since September on Thursday. Technology stocks declined as South Korea — a poster child for AI investments — slumped 2.7%, with chipmakers Samsung Electronics Co. and SK Hynix Inc. leading losses. Taiwanese shares dropped 1.4%.
Sentiment had improved earlier Friday after President Donald Trump again delayed his deadline for Iran to agree to a ceasefire deal or face more attacks. Brent fell 1.7% to about $106 a barrel, after Trump’s 10-day extension. US equity-index futures also pared gains to 0.3% 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 build up 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.
Brent crude has fallen about 5% this week, set for its first weekly loss since mid-February. That hasn’t provided any relief for stocks, with the MSCI All Country World Index heading for its fourth week of losses. Asian shares are set for their longest weekly losing streak since November 2024.
In other corners of the market, a Bloomberg gauge of the dollar edged 0.1% lower, while gold advanced to trade around $4,400. 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 0.3% as of 11:33 a.m. Tokyo time Japan’s Topix fell 0.3% Australia’s S&P/ASX 200 fell 0.5% Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite rose 0.2% Euro Stoxx 50 futures rose 0.3% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1540 The Japanese yen rose 0.2% to 159.55 per dollar The offshore yuan was little changed at 6.9194 per dollar Cryptocurrencies
Bitcoin was little changed at $69,010.88 Ether rose 0.5% to $2,073.55 Bonds
The yield on 10-year Treasuries was little changed at 4.41% Japan’s 10-year yield advanced 4.5 basis points to 2.320% Australia’s 10-year yield advanced six basis points to 5.07% Commodities
West Texas Intermediate crude fell 1.5% to $93.10 a barrel Spot gold rose 1.3% to $4,431.36 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Sarah Chen.
©2026 Bloomberg L.P.
