Asia markets trade mixed as investors assess Trump's Iran war comments, extended deadline

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A small boat with fishermen passes as a vessel sits at anchor, amid the U.S.-Israeli conflict with Iran, off Sultan Qaboos Port in Muscat, Oman, March 25, 2026.

Stringer | Reuters

Asian stocks traded mixed Monday, with several key markets closed for holidays, with investors monitoring developments in the Middle East conflict.

President Donald Trump on Sunday issued a fresh round of threats to attack Iran’s power plants and civilian infrastructure starting Tuesday, if Tehran failed to fully reopen the Strait of Hormuz, a key oil chokepoint where about one-fifth of the world’s oil supplies flow through, before the regional war broke out on Feb. 28.

In an expletive-laden social media post, Trump vowed to bring “Hell” to Iran after U.S. forces rescued an American airman in Iran last week. He later posted about a “Tuesday 8 P.M. Eastern Time” deadline without elaborating. The White House on Sunday told MS NOW that the date is the new deadline for Iran to reach a deal with the U.S.

Trump said he will hold a press conference “with the Military” at the Oval Office at 1 p.m. on Monday.

Iran has, however, rejected Trump’s ultimatum to reopen the Strait of Hormuz, saying that the critical waterway would only reopen fully after damage from the war is compensated. Tehran has continued strikes on economic and infrastructure targets in the neighboring Gulf region, including Kuwait’s oil headquarters.

Signaling progress in the peace talks, Axios reported that Washington and Tehran were engaged in discussions mediated by some Gulf states for a potential 45-day ceasefire that could end the conflict, although the odds for reaching a partial deal before the Tuesday deadline were slim.

“The question is whether or not a more favourable outcome can be reached without another round of exchanges that can potentially narrow the path to lower intensity conflict in the medium term,” said Homin Lee, senior macro strategist at Lombard Odier, adding that investors will be careful with trading from headline to headline.

If Trump follows through on targeting Iran’s power grid and civilian infrastructure, risk assets may face another leg lower, Lee added. “As long as the anxious wait for Iran end-game clarity continues, markets will likely remain volatile.”

Japan’s Nikkei 225 climbed 0.55% higher to end the session at 53,413.68, and the broad-based Topix ended flat at 3,644.8. South Korea’s blue-chip Kospi rose 1.36% to 5,450.33 while the small-cap Kosdaq dropped 1.5% to 1,047.37.

India’s benchmark Nifty 50 was 0.62% higher, reversing course from losses earlier in the session, while the BSE Sensex was up 0.68% as of 1.45 p.m. local time [4:15 a.m. ET]

Many markets in Asia are closed on Monday for holidays, as Australia, New Zealand, and Hong Kong celebrate Easter, while mainland China and Taiwan celebrate Qingming Festival, the tomb-sweeping holiday.

Eight members of the Organization of the Petroleum Exporting Countries and allies raised their production quotas on Sunday by 206,000 barrels per day for May, though the move appeared largely symbolic as the war has constrained shipments from several members.

The U.S. West Texas Intermediate for May dropped around 2% to $109.3 per barrel. International benchmark Brent crude prices declined over 1% to $107.8 per barrel as of 4:15 a.m. ET.

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Stock futures on Wall Street eked out modest gains overnight, with futures tied to S&P 500 and Nasdaq-100 gaining 0.22% and 0.42%, respectively. Dow Jones Industrial Average futures were largely flat, up 0.04%.

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