BY COMFORT OGBONNA
Asian stock markets mostly recorded modest gains on Tuesday, with investors trading cautiously as global oil prices continued to climb. The increase in energy prices comes as geopolitical tensions intensify following a deadline issued by U.S. President Donald Trump demanding that Iran reopen the strategically critical Strait of Hormuz to all international shipping traffic or risk severe military consequences targeting key infrastructure.
The warning has heightened concerns across financial markets, as the Strait of Hormuz serves as one of the most vital energy transit routes in the world. A large portion of the world’s oil supply passes through the narrow waterway each day, and any disruption could significantly affect global energy markets and economic stability.
In Asia, stock market movements were generally positive but restrained, reflecting investor caution. Japan’s benchmark Nikkei 225 edged up slightly, gaining less than 0.1% to close at 53,429.56. Although the increase was modest, it indicated that Japanese investors remained attentive to developments in global energy markets and geopolitical tensions.
Australia’s S&P/ASX 200 posted stronger gains, rising 1.7% to finish at 8,728.80. The Australian market was supported by strength in energy and mining shares, which often benefit from rising commodity prices. Meanwhile, South Korea’s Kospi climbed 0.8% to close at 5,494.78, reflecting steady investor demand for technology and industrial stocks.
In mainland China, the Shanghai Composite rose 0.3% to end the session at 3,890.16. Investors in China appeared to balance optimism over economic activity with caution tied to geopolitical risks. Trading in Hong Kong remained closed due to a public holiday, leaving investors there temporarily on the sidelines.
Across the Pacific, Wall Street also recorded modest gains during the previous trading session. The broad-based S&P 500 rose 0.4%, helping the market recover after several weeks of volatility and marking its first weekly gain in six weeks. The Dow Jones Industrial Average advanced by 165 points, also up 0.4%, while the technology-focused Nasdaq Composite climbed 0.5%.
Energy markets remained the primary focus for investors worldwide. In commodity trading, benchmark U.S. crude oil surged $2.41 to reach $114.82 per barrel. International benchmark Brent crude also rose significantly, gaining $1.46 to settle at $111.23 per barrel. These prices remain far above the roughly $70 per barrel level seen before the current conflict began, highlighting the impact of geopolitical uncertainty on energy markets.
Oil prices have been highly volatile in recent weeks as traders attempt to gauge how the conflict involving Iran may evolve and how long disruptions to global oil and natural gas supply could last. Because so much of the world’s petroleum shipments pass through the Strait of Hormuz, any threat to the passage has immediate effects on global pricing and investor sentiment.
Tensions escalated further after Iran rejected the latest ceasefire proposal on Monday. Iranian officials stated that they are seeking a permanent end to the conflict rather than a temporary pause in hostilities, a stance that adds uncertainty to diplomatic efforts aimed at easing the crisis.
Market analysts say the situation remains unpredictable. Research analysts at Mizuho Bank in Singapore noted that the recent developments represent a continuation of an ongoing escalation cycle. According to the firm’s research publication, the latest ultimatum from Trump reflects a pattern of rising pressure that has been repeated several times since the first warning was issued in late March.
With geopolitical tensions still unresolved and oil prices climbing, investors are expected to remain cautious in the coming days. Market participants will likely continue to monitor diplomatic developments closely, as any shift in negotiations or military activity could have immediate consequences for global financial markets and energy prices.
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