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March 24, 2026 – 02:23

(Bloomberg) — Asian stocks pared early gains and equity-index futures reversed course, signaling that the fragile optimism around a potential de-escalation in Middle East tensions may be fading. Gold extended its slump, on track for its longest losing streak on record.

Asian shares pared their earlier jump of as much as 1.7% to a gain of 0.9%, while contracts for the S&P 500 dropped 0.6% after the Wall Street Journal reported that US allies in the Persian Gulf are inching toward joining the fight against Iran. Sentiment further weakened after an Iranian lawmaker ruled out negotiations with the US.

The Bloomberg Dollar Spot Index rose 0.2% and gold reversed earlier gains to decline for a 10th consecutive day. The yellow metal fell 1.4% to trade around $4,340 an ounce. Silver tumbled 2.5%, while yields on the 10-year Treasury reversed earlier losses to rise three basis points to 4.37%.

Brent crude rose 2% to almost $102 a barrel. The Strait of Hormuz remained effectively shut with only a trickle of vessels making their way through the key waterway. The commodity had plunged 11% on Monday following Trump’s comments.

Wall Street gauges rose on Monday after President Donald Trump had signaled a delay in planned strikes on Iranian energy infrastructure, citing talks with Tehran and boosting hopes for de-escalation in the Middle East.

Tuesday’s whipsawing moves show how quickly geopolitics can sway global markets, with the Strait — a chokepoint for about a fifth of global oil and LNG flows — at the center. Since the conflict began, disruptions to traffic through the narrow waterway have driven sharp price swings and heightened inflation risks, leaving progress in US-Iran talks pivotal to stabilizing energy markets and broader financial conditions.

“The situation is still very fluid,” Suresh Tantia, head CIO of Asia equity strategy at UBS Global Wealth Management, said on Bloomberg TV. “It’s quite possible that a week later we get further escalation because there are asks from both sides and it might be very difficult to reach a final conclusion with a very short period of time. So I think markets could still remain volatile in the short term.”

Trump had told reporters on Monday that he was holding off on striking Iranian energy infrastructure for five days, citing “major points of agreement” with Iran.

The abrupt shift caught traders off guard. There had been little sign of diplomatic progress before the US president’s post.

Even so, tensions remained in the Middle East. A gas pressure-regulation station and an associated administrative building were targeted in Iran’s central Isfahan province in recent US–Israeli attacks, the semi-official Fars news agency reported.

The key to de-escalation is not rhetoric, but financial conditions, said Noureldeen AlHammoury, chief market strategist at Equiti Group in Dubai.

If oil sustains above $120, US 10-year yields approach 4.75%, and equities see a sharp drawdown, the situation quickly becomes an economic problem rather than a geopolitical one, he said.

“That is the point where policy shifts and de-escalation become more likely,” he added. “We have seen a similar pattern before — when financial conditions tightened sharply during prior tariff escalations, policy tone shifted quickly to stabilize markets.”

Corporate News:

Apollo Global Management Inc. fell 2.6% in extended trading after curbing redemptions from one of its largest non-traded private credit funds for retail investors. Netgear Inc. shares jumped 13% in extended trading after the Federal Communications Commission ordered a ban on the import of new models of foreign-produced consumer wireless routers after an interagency panel determined they threaten national security. Sony Group Corp. is nearing a binding agreement to sell a majority stake in its home entertainment business to Chinese rival TCL Electronics Holdings Ltd. in a deal that may be valued at about $1 billion. Toyota Motor Corp. outlined plans to invest $1 billion to increase vehicle output at its plants in two states, the latest tranche of a broader spending commitment of as much as $10 billion in the US over the next five years. Grab Holdings Ltd. agreed to buy Delivery Hero SE’s Foodpanda operations in Taiwan for $600 million. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.6% as of 10:17 a.m. Tokyo time Japan’s Topix rose 1.4% Australia’s S&P/ASX 200 rose 0.2% Hong Kong’s Hang Seng fell 3.5% The Shanghai Composite fell 3.6% Euro Stoxx 50 futures fell 0.4% Currencies

The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1587 The Japanese yen was little changed at 158.54 per dollar The offshore yuan fell 0.1% to 6.8922 per dollar Cryptocurrencies

Bitcoin fell 0.6% to $70,496.95 Ether fell 1.1% to $2,137.55 Bonds

The yield on 10-year Treasuries advanced four basis points to 4.38% Japan’s 10-year yield declined three basis points to 2.275% Australia’s 10-year yield declined six basis points to 5.06% Commodities

West Texas Intermediate crude rose 3.4% to $91.17 a barrel Spot gold fell 1.6% to $4,336.78 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Ruth Carson and Abhishek Vishnoi.

©2026 Bloomberg L.P.