Asian Stock Markets Plunge Amid US-Iran Peace Uncertainty

Asian-Pacific stock markets slumped during the opening session on Friday, 27 March 2026. Uncertainty over the prospects of a peace agreement in the Middle East and contradictory statements from the United States (US) and Iran have triggered volatility in global financial markets.

US President Donald Trump extended the deadline by 10 days until 6 April 2026 regarding the postponement of plans to attack Iran’s energy infrastructure. This pause, Trump stated, provides more time for negotiations.

Trump conveyed that the extension of the pause period was made at the request of the Iranian government. He added that the “leeway” was given in exchange for 10 oil tankers passing through the Strait of Hormuz as a “gift” from Tehran.

“In accordance with the request of the Iranian Government, please consider this statement as a signal that I am temporarily halting the destruction period of the Energy Power Plant,” Trump wrote in a post on Truth Social, quoted from CNBC International, Friday, 27 March 2026.

In recent days, Washington has signalled its desire to end the war through negotiations and affirmed that it is engaged in peace talks with Iran. However, the Iranian side denies conducting direct talks with the US.

Iran is reported to have rejected a 15-point proposal drafted by the US and offered its own conditions. One of them is a guarantee that the US and Israel will not continue their attacks on the country and recognition of its authority over the Strait of Hormuz.

South Korea’s market led the declines in the Asian region. The Kospi index plunged 3.6 per cent, while the Kosdaq index, comprising small-capitalisation stocks, fell 2 per cent.

In Japan, the Nikkei 225 index eroded by 1.6 per cent. Meanwhile, the Topix index slumped 0.8 per cent.

Australia’s S&P/ASX 200 index dropped 0.42 per cent in early Asian trading. Hong Kong’s Hang Seng index weakened by 0.2 per cent, while the mainland China’s CSI 300 index lost 0.4 per cent.