Stocks in Japan and South Korea moved slightly higher as investors reacted to new developments in the U.S.-Iran conflict. Trading remained cautious, with several Asian markets closed for holidays, but investors continued to monitor headlines that could influence oil prices and global market stability.
President Donald Trump warned that the U.S. could intensify attacks if Iran does not fully reopen the Strait of Hormuz, a key shipping route that carries a large share of the world’s oil supply. Any disruption in the area often affects energy costs, making the situation particularly sensitive for financial markets. Iran rejected the demand, saying the waterway would only fully reopen once damages linked to the conflict are addressed.
Oil prices rose as uncertainty around supply continued to affect sentiment. Although OPEC+ announced a small increase in production for May, the ongoing conflict has already created concerns about shipping and output across the region. Reports also suggest that diplomatic talks are taking place through Gulf state mediators, raising cautious hopes for a temporary pause in hostilities.
Japan’s Nikkei 225 and South Korea’s Kospi posted modest gains as investors balanced geopolitical risks with expectations that negotiations could still ease tensions. Markets are likely to remain sensitive to political developments, as any escalation could quickly influence global trade flows, inflation expectations, and overall investor confidence.
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