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March 27, 2026 – 07:11

(Bloomberg) — The biggest monthly selloff in global stocks since 2022 moderated after the US gave Iran more time to reach a deal on ending the month-long war.

US equity-index futures extended gains to 0.5%, signaling a rebound after the underlying gauges slumped to their lowest level since September. That came after President Donald Trump delayed his deadline for Iran to agree to a ceasefire deal by 10 days. European shares were also set to open 0.6% higher on Friday. Asian equities pared earlier losses to drop 0.5%.

The MSCI All Country World Index is still headed for its worst month in more than three years as the Middle East conflict stokes concerns about inflation and lower economic growth. Australian and New Zealand bond yields pushed higher, following similar moves in Treasuries in the US session. The selloff was worse in Japan, where the 2-year yield hit its highest level since 1995 and longer-dated equivalents surged. European bond futures also dipped.

Hurting the sentiment was Brent crude paring losses of as much as 2.7% and trading little changed at about $108 a barrel.

The latest bout of whipsaw trading extends a month of war-driven swings, with investors uncertain about whether hostilities are set to ease or escalate. Traders are closely watching the Strait of Hormuz, a key waterway for Middle East oil flows that remains effectively shut, driving crude oil higher and adding to inflation pressures.

“By extending the deadline, it effectively kicks the can down the road, pushing back any concrete resolution regarding the reopening of the Strait of Hormuz,” Tony Sycamore, a market analyst at IG Australia, wrote in a note. “This, in turn, simply extends the uncertainty weighing on markets and the broader global economy.”

Trump said talks with Iran were going “very well.” He also said he would extend his pledge to refrain from attacks on the country’s energy sites, offering a brief calm to global energy markets jolted by the conflict.

Iran responded to the ceasefire proposal through intermediaries, the semi-official Tasnim news agency reported, and is now awaiting a reply. Tehran has a string of conditions for ending the conflict, one of which is a guarantee that the US and Israel won’t resume their attacks.

The markets were caught off guard by the initial US and Israeli strikes at the end of February, which came in the middle of talks that were ostensibly going well, but were accompanied by a huge US military buildup in the Middle East, Kyle Rodda at Capital.com wrote in a note.

“The current situation looks very similar, with markets positioning for a potential weekend escalation,” he said.

What Bloomberg’s Strategists Say…

“Equities are likely to extend their slide into the weekend with the status quo of the US-Iran war showing no sign of shifting despite hopeful comments from the US about a path toward peace. Investors face serious difficulties in trying to judge the potential for a turnaround.”

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

Asia’s benchmark share index has dropped 10% this month, while gold slumped about 15%. Brent crude has jumped about 48% since the war started at the end of February.

Higher oil prices have fueled inflation concerns, raising the prospect that policymakers may keep interest rates elevated or even tighten further. That’s reflected in Treasuries, with the benchmark 10-year note yielding 4.42% on Friday, up about 48 basis points from its Feb. 27 close.

In other corners of the market, the yen strengthened against the dollar after Finance Minister Satsuki Katayama said the authorities can take measures against foreign-exchange moves, including bold actions. Bitcoin traded below $69,000.

The dollar fell and gold jumped as stocks gained traction.

Sentiment remained fragile, and some of the optimism was damped after the Wall Street Journal reported the Pentagon is looking at sending up to 10,000 additional ground troops to the Middle East.

Meanwhile, Treasury Secretary Scott Bessent said a US insurance program meant to boost shipping through the Strait of Hormuz will begin soon, a move that may help revive flows of much of the world’s oil and gas supplies. The near-total closure of the waterway has meant millions of barrels of lost daily oil output, while pushing up product prices from diesel to jet fuel.

The United Arab Emirates told allies that it would participate in a multinational maritime task force intended to reopen the Strait of Hormuz, as it lobbies to form a coalition to ensure shipping is able to pass through the vital Gulf waterway, the Financial Times reported.

“The war in Iran and the resulting surge in oil prices continue to dampen risk appetite,” said Adam Turnquist at LPL Financial. “Any sustainable market recovery will require meaningful progress toward a peace agreement and a reopening of the Strait of Hormuz.”

Corporate News:

Pernod Ricard SA and Brown-Forman Corp., the owner of Jack Daniel’s whiskey, are discussing a merger as the alcoholic drink companies look at ways to consolidate amid an industry downturn. Meituan expects losses per delivery order to start narrowing in the current quarter, as Chinese officials rein in its intense competition with Alibaba Group Holding Ltd. and JD.com Inc. Apple Inc. plans to open Siri to outside artificial intelligence assistants, a major move aimed at bolstering the iPhone as an AI platform. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.5% as of 3:10 p.m. Tokyo time S&P/ASX 200 futures fell 0.1% Japan’s Topix rose 0.1% Hong Kong’s Hang Seng rose 0.5% The Shanghai Composite rose 0.4% Euro Stoxx 50 futures rose 0.5% Currencies

The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1543 The Japanese yen rose 0.1% to 159.60 per dollar The offshore yuan was little changed at 6.9179 per dollar Cryptocurrencies

Bitcoin fell 0.4% to $68,658.9 Ether fell 0.1% to $2,060.75 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.43% Japan’s 10-year yield advanced 9.5 basis points to 2.370% Australia’s 10-year yield advanced nine basis points to 5.10% Commodities

West Texas Intermediate crude fell 0.5% to $94.03 a barrel Spot gold rose 2% to $4,461.81 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Sarah Chen.

©2026 Bloomberg L.P.