Asian Shares Rise Despite Iran Attacks

Oil prices slip back as markets shrug off escalating tensions in the Middle East

Mar. 18, 2026 at 8:51am by Ben Kaplan

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Asian stock markets mostly gained on Wednesday, with benchmarks in Japan and South Korea jumping, as oil prices fell back slightly despite a barrage of attacks by Iran on its Gulf neighbors. U.S. futures also rose, and Wall Street had moderate gains the previous day ahead of the Federal Reserve's interest rate decision.

Why it matters

The attacks by Iran on its Gulf neighbors and Israel have raised concerns about global oil and gas supplies and prices, which are a major factor for economies worldwide. However, markets appear to have taken the latest escalations in stride, suggesting investors are not overly worried about the impact on the global economy at this time.

The details

Tokyo's Nikkei 225 index gained 2.6% after the Japanese government reported higher-than-expected exports in February. South Korea's Kospi jumped 3.8%, benefiting from lower oil prices as a major importer. Hong Kong's Hang Seng and the Shanghai Composite in mainland China both declined slightly. U.S. benchmark crude fell more than 3% to $93.17 per barrel, while Brent crude, the international standard, dropped 2.3% to around $101 per barrel.

  • On Wednesday, Iran launched multiple attacks on its Gulf neighbors and Israel following the killing of one of its top leaders.
  • On Tuesday, U.S. stocks held steadier, with the S&P 500 rising 0.3%.

The players

Iran

A Middle Eastern country that launched a barrage of attacks on its Gulf neighbors and Israel in response to the killing of one of its top leaders.

Federal Reserve

The central banking system of the United States, which is expected to keep interest rates on hold amid higher oil prices feeding into broader inflation.

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What they’re saying

“Global oil flows remain largely constrained, even as hopes were growing that Iran might be allowing more vessels through the Strait of Hormuz, a key waterway for global oil and gas transport.”

— Warren Patterson and Ewa Manthey, ING Bank analysts (ING Bank)

The takeaway

Despite the escalating tensions in the Middle East, global markets have so far shown resilience, with Asian shares gaining and oil prices slipping back. This suggests investors are not overly concerned about the potential economic impact of the Iran attacks at this time, though the situation remains fluid and bears close watching.