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May 26, 2026 – 02:28

(Bloomberg) — Asian stocks pared gains and crude oil advanced after reports of US strikes on sites in Iran damped optimism over a potential deal with Tehran.

The MSCI Asia Pacific Index pared most of an earlier gain to edge up 0.1%, after climbing as much as 0.4% earlier Tuesday. US equity-index futures rose 0.6%, though gains were more muted than Monday’s holiday-thinned advance, when markets in the US were closed. Treasuries rallied across the curve as cash trading resumed after a holiday break.

Oil ticked higher after slumping by more than 7% on Monday, as reports of fresh military strikes in Iran clouded the outlook for an interim deal between Tehran and Washington to reopen the Strait of Hormuz. Brent rose toward $98 a barrel. The dollar was a touch stronger against its Group-of-10 peers.

Hours after Iranian negotiators arrived in Qatar for talks on ending the war, US forces struck missile launch sites in Iran and boats trying to emplace mines, American officials said Monday night, the New York Times reported.

“The market is going to be cautious, given how previous hopes for a deal were dashed,” said Abbas Keshvani, director of Asia macro strategy at RBC Capital Markets in Singapore. “But progress in the talks could lead to a further reduction in energy prices, inflation expectations, and therefore yields.”

Earlier, US President Donald Trump said that negotiations with Iran over an interim deal to extend their ceasefire and reopen the strait were “proceeding nicely.” Pakistan’s military chief, Asim Munir, the main interlocutor between the warring sides, told China an agreement is “close to being reached.”

Global stocks hit a record Monday as traders bet the worst of the Middle East energy shock may be over after months of conflict disrupted oil supplies, stoked inflation fears and drove bond yields higher. A deal to reopen the Strait of Hormuz and extend the US-Iran ceasefire could further ease pressure in the oil markets and spur the AI-led rally in equities.

Key sticking points remain unresolved, however, including the future of Iran’s nuclear program. Iran’s Tasnim news agency reported the draft agreement could still collapse because of US objections to several provisions, including Tehran’s demand that frozen assets be released.

Tensions remained as American and Israeli warplanes targeted several Iranian vessels south of Larak Island in the Strait of Hormuz, state-run Nour News reported, citing local sources.

“A consensus was reached on many of the topics discussed, but no one can claim that the signing of an agreement is imminent,” Iran’s Foreign Ministry Spokesman Esmail Baghaei told reporters on Monday.

In other geopolitical news, Russian Foreign Minister Sergei Lavrov urged US Secretary of State Marco Rubio to evacuate American citizens and diplomats from Kyiv ahead of what Moscow said would be an escalation of strikes on the Ukrainian capital, according to a statement from Russia’s Foreign Ministry on Monday.

Traders will also be closely watching the opening of trading in Hong Kong. Chinese investors are rushing to find alternative ways to buy and sell overseas equities after Beijing launched its most forceful crackdown on illicit cross-border stock trading to stem capital outflows.

Read: BlackRock’s Saigal Sees ‘Sufficient Factors’ to Justify Fed Cut

Corporate News:

Rapid-commerce firm Zepto Ltd. is preparing to publicly file in the first half of June for an initial public offering that may raise up to $1 billion, according to people familiar with the matter. Ferrari NV unveiled its first fully electric car, a five-seat model priced at €550,000 ($640,000) that marks a sharp break from the sports-car maker’s fuel-burning heritage. VinFast Auto Ltd. appointed the son of billionaire founder Pham Nhat Vuong as chairman while the Vietnamese electric vehicle maker faces mounting losses and setbacks in the US. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.6% as of 9:26 a.m. Tokyo time Hang Seng futures were unchanged Japan’s Topix fell 0.3% Australia’s S&P/ASX 200 fell 0.6% Euro Stoxx 50 futures rose 1.9% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1634 The Japanese yen was little changed at 158.98 per dollar The offshore yuan was little changed at 6.7854 per dollar The Australian dollar was little changed at $0.7166 Cryptocurrencies

Bitcoin fell 0.2% to $77,053.84 Ether was little changed at $2,105.65 Bonds

The yield on 10-year Treasuries declined six basis points to 4.50% Japan’s 10-year yield advanced two basis points to 2.710% Australia’s 10-year yield advanced two basis points to 4.90% Commodities

West Texas Intermediate crude fell 5.5% to $91.30 a barrel Spot gold fell 0.5% to $4,546.24 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Toby Alder and Ruth Carson.

©2026 Bloomberg L.P.