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March 27, 2026 – 02:38

(Bloomberg) — A global equity selloff stretched into a second day as initial optimism over the US delaying its deadline for Iran to reach a deal faded. Oil pared earlier declines.

Asia’s benchmark share index fell 1.1% after Wall Street gauges slid to the lowest level since September on Thursday. Technology stocks declined as South Korea — a poster child for AI investments — slumped 2.9%, with chipmakers Samsung Electronics Co. and SK Hynix Inc. leading losses. Taiwanese shares dropped 1.6%.

Sentiment had improved earlier Friday after President Donald Trump again delayed his deadline for Iran to agree to a ceasefire deal or face more attacks. Brent was 1.1% lower at $106.78 a barrel, having fallen as much as 2% earlier on Trump’s 10-day extension.

US equity-index futures pared gains to 0.2% and oil trimmed losses after the Wall Street Journal reported the Pentagon is looking at sending up to 10,000 additional ground troops to the Middle East.

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 build up 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.

Brent crude has fallen about 5% this week, set for its first weekly loss since mid-February. That hasn’t provided any relief for stocks, with the MSCI All Country World Index heading for its fourth week of losses. Asian shares are set for their longest weekly losing streak since November 2024.

In other corners of the market, a Bloomberg gauge of the dollar edged 0.1% lower, while gold advanced to trade around $4,400. 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 edged lower, trading below $69,000.

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 uip product prices from diesel to jet fuel.

“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.”

Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.4% as of 10:37 a.m. Tokyo time Nikkei 225 futures (OSE) fell 0.8% Japan’s Topix fell 0.3% Australia’s S&P/ASX 200 fell 0.5% Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite fell 0.3% Euro Stoxx 50 futures were little changed Currencies

The Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.1% to $1.1539 The Japanese yen rose 0.2% to 159.56 per dollar The offshore yuan was little changed at 6.9168 per dollar Cryptocurrencies

Bitcoin fell 0.2% to $68,849.73 Ether rose 0.2% to $2,068.63 Bonds

The yield on 10-year Treasuries was little changed at 4.41% Japan’s 10-year yield advanced 4.5 basis points to 2.320% Australia’s 10-year yield advanced six basis points to 5.07% Commodities

West Texas Intermediate crude fell 1.3% to $93.27 a barrel Spot gold rose 0.8% to $4,412.60 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson and Sarah Chen.

©2026 Bloomberg L.P.