Asian Markets Hold Steady Ahead of Trump's Iran Deadline as Oil Tops $110

Asian equity markets traded within tight ranges on Tuesday as cautious investors stepped back from risk assets ahead of a critical U.S. deadline tied to the escalating Iran conflict. With President Donald Trump warning that Iran could face sweeping military consequences — including strikes on infrastructure such as power plants and bridges — if it fails to reopen the Strait of Hormuz by 8 p.m. ET, market sentiment remained fragile across the region.

Iran has rejected a U.S.-backed ceasefire proposal, countering with its own set of demands that include sanctions relief, reconstruction guarantees, and a broader resolution to regional hostilities. Fresh reports of continued Israeli-Iranian exchanges on Tuesday underscored how far the two sides remain from any agreement, keeping geopolitical risk firmly in focus.

Energy markets reflected the heightened tensions, with crude oil prices climbing above $110 per barrel — levels not seen in years — raising concerns about a global inflation resurgence that could complicate central bank policy decisions worldwide.

In Japan, the Nikkei 225 and TOPIX both closed relatively flat, while China's Shanghai Composite was similarly muted. The blue-chip CSI 300 slipped 0.3%, and Hong Kong markets remained shut for a public holiday. India's Nifty 50 declined 0.5% and Singapore's Straits Times Index eased 0.2% lower.

South Korea's KOSPI managed a modest 0.2% gain, buoyed by strong earnings momentum in the technology sector. Samsung Electronics projected an eightfold jump in first-quarter operating profit, driven by surging demand for AI chips, while LG Electronics reported a solid quarterly earnings rebound — both helping offset broader regional caution.

Australia stood out as a regional outlier, with the S&P/ASX 200 advancing 1.5% against the prevailing trend.