The conflict involving Iran continued to shape markets and regional security. Tokyo's Nikkei leapt 5.7% while oil prices stabilised after recent declines, supported by strong U.S. equity performance. Diplomacy showed signs of movement as Iran reviews a U.S. proposal and leaders discussed potential deals. Military incidents included an Israeli strike that killed a senior Hezbollah commander and a U.S. warplane disabling an Iranian‑flagged tanker; France repositioned its carrier amid growing concern.
Middle East Conflict Update: Markets Rally as Diplomacy and Military Tensions Continue
France's Charles de Gaulle aircraft carrier its escorts were transiting the Suez Canal, the defence ministry said (Angelos TZORTZINIS)(Angelos TZORTZINIS/AFP/AFP)
Global markets and regional diplomacy saw notable movement as the conflict involving Iran produced a mix of military incidents and renewed negotiation efforts. Tokyo's Nikkei surged, oil prices stabilised after a recent drop, and a series of political and military developments across the Gulf and Lebanon kept tensions high.
Markets and Energy
Tokyo: The Nikkei jumped 5.7% to 62,915.87 at the midday break, powered by growing investor optimism that the conflict involving Iran may be nearing a de‑escalation.
Oil: Prices were largely unchanged, with West Texas Intermediate around $95.08 a barrel and Brent at about $101.32, after both benchmarks fell roughly 10% over the prior two sessions. U.S. stock gains — including record closes for the S&P 500 and Nasdaq for a second day — supported global risk appetite.
Diplomacy and Negotiations
Iran Reviews U.S. Proposal: Iran's foreign ministry spokesman, Esmaeil Baqaei, said a U.S. proposal to end the war is still "under review" in Tehran. He told the ISNA news agency that Iran will finalise its position and convey its views to mediator Pakistan.
Comments From Donald Trump: Donald Trump told reporters that a deal with Iran to end the conflict was "very possible" following what he described as "very good talks" over the previous 24 hours.
Military Incidents
Hezbollah Commander Killed: A senior commander from Hezbollah's elite force was reported killed in an Israeli strike on Beirut's southern suburbs. Lebanon's health ministry said at least 11 others were killed in strikes across the south and east.
Tanker Disabled by U.S. Forces: The U.S. military said a Navy warplane fired on and disabled the rudder of an oil tanker flying an Iranian flag after it attempted to breach what Washington described as a blockade of Iranian ports. Central Command said the vessel was warned but its crew did not comply; an F/A‑18 Super Hornet fired 20mm rounds to disable the ship's steering.
Incidents at Sea and Regional Security
Iran denied responsibility for an explosion that damaged a South Korean vessel in the Strait of Hormuz. Tehran's embassy in Seoul "firmly rejects and categorically denies" involvement by Iran's armed forces in the incident.
International Responses
France: President Emmanuel Macron told Iran's Masoud Pezeshkian that attacks on Emirati civilian infrastructure and ships near the Strait of Hormuz were "unjustified," expressing deep concern about the escalation. France also redeployed its aircraft carrier, the Charles de Gaulle, toward the southern Red Sea to pre‑position for a possible mission to help secure navigation through the strait.
Israel: Israel's army chief, Lieutenant General Eyal Zamir, pledged to "seize every opportunity to deepen the dismantling of Hezbollah and continue weakening it," and said the military was prepared to launch further operations if required.
Iran Seeks Regional Backing: Iranian Foreign Minister Abbas Araghchi said Tehran is looking to China for support in shaping a "post‑war" regional framework following its confrontation with the United States.
Reporting compiled from multiple statements and sources. Details remain subject to confirmation as events develop.
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