Asian Stocks Waver, Oil Prices Rise as Trump Escalates Iran Threats

Investors closely watching energy prices and Strait of Hormuz closure amid rising geopolitical tensions

Apr. 6, 2026 at 12:58am

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Asian stocks edged higher during the trading session, while oil prices extended gains after US President Donald Trump signaled a likely sharp escalation in the conflict with Iran. Japan's Nikkei index increased 0.7% and South Korean shares were up 2%, though markets in China and Hong Kong were closed for a public holiday. US equity futures also erased early losses to trade flat. Brent crude oil rose 1.9% to trade above $111 per barrel as Trump renewed threats to attack Iranian infrastructure if the key Strait of Hormuz shipping route remains closed.

Why it matters

The escalating tensions between the US and Iran are roiling global markets, with the potential closure of the Strait of Hormuz posing a major risk to the global oil supply. This is rapidly darkening the economic outlook by threatening to cool growth and push up already elevated inflation, which could impact the Federal Reserve's interest rate decisions.

The details

Trump on Sunday renewed threats to attack Iranian infrastructure if the Strait of Hormuz remains closed, following it up with another tweet saying 'Tuesday, 8:00 P.M. Eastern Time!' with no further explanation. OPEC+ has warned that damage to West Asian energy assets will have a prolonged impact on oil supply even after the conflict ends. Attacks have continued to flare around the region, keeping oil prices well above $100 per barrel. The surge in crude oil prices is expected to drive up US consumer prices, with the March CPI data due on Friday likely showing the biggest monthly increase since the post-pandemic inflation surge in 2022.

  • On Sunday, Trump renewed threats to attack Iranian infrastructure if the Strait of Hormuz remains closed.
  • On Monday at 1 pm New York time, Trump plans to hold a news conference.

The players

Donald Trump

The President of the United States who has escalated threats against Iran amid the ongoing conflict.

OPEC+

The alliance of oil-producing countries that has warned of a prolonged impact on oil supply due to damage to energy assets in West Asia.

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What they’re saying

“Tuesday, 8:00 P.M. Eastern Time!”

— Donald Trump, President of the United States

What’s next

Investors will closely watch the impact of the surge in crude oil prices on the upcoming US consumer price index data, which is due to be released on Friday.

The takeaway

The escalating tensions between the US and Iran are causing significant volatility in global markets, with the potential closure of the Strait of Hormuz posing a major risk to the global oil supply. This is rapidly darkening the economic outlook and could impact the Federal Reserve's interest rate decisions.