Asia-Pacific markets opened higher on Tuesday as investors remained hopeful that a diplomatic agreement between Washington and Tehran could still be reached, even as tensions escalated following the implementation of a U.S. blockade on Iranian shipments in the Strait of Hormuz.
A fragile ceasefire between the United States and Iran has come under increasing strain, with both sides accusing each other of breaching the terms of the truce.
The United States on Monday confirmed it had begun blocking ships from entering or leaving Iranian ports via the Strait of Hormuz, in a move aimed at increasing pressure on Tehran to reopen the vital oil route after peace talks collapsed.
Iranian officials warned that the move would push global energy prices higher. “Enjoy the current pump figures. With the so-called ‘blockade’, Soon you’ll be nostalgic for $4–$5 gas,” Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, said in a post on X on Sunday.
By 11:20 am AEDT (1:20 am GMT), Australia’s S&P/ASX 200 had gained 0.4%, Japan’s Nikkei 225 rose 1.7%, and South Korea’s KOSPI 200 surged 3.2%.
On the economic front, Australian data highlighted ongoing pressure on households as Westpac’s consumer sentiment index plunged 12.5% in April.
Matthew Hassan, Head of Australian Macro-Forecasting at Westpac, noted in the release: "Australian consumers are being hit by another ‘cost of living’ shock. The spike in fuel prices following the U.S.–Israel war on Iran and a further 25bp interest rate increase are again putting finances under intense pressure.
"A sharp deterioration in expectations suggests consumers are bracing for a return to the extended period of weakness seen during the 2022–24 inflation fight.
"The April sentiment drop is the biggest monthly decline since the onset of the COVID pandemic. At 80, the Index is back near historical lows, albeit above the extremes seen at the onset of the pandemic and during the recessions of the early 1990s and 1980s."
ASX’s RBA Rate Tracker is currently indicating a 62% probability of a rate hike to 4.35% at the next Reserve Bank of Australia meeting, based on the 13 April pricing of the ASX 30 Day Interbank Cash Rate Futures May 2026 contract.
Overnight in the United States, equities closed higher, with the Dow Jones Industrial Average rising 0.6%, the S&P 500 gaining 1%, and the Nasdaq Composite advancing 1.2%, as investors shrugged off geopolitical risks.
In commodities, oil prices surged amid supply concerns, with Brent crude climbing 4.4% to $99.36 per barrel. In contrast, spot gold edged 0.2% lower to $4,741.96 per ounce.
Elsewhere in the region, China’s Shanghai Composite Index added 0.1% to close at 3,988.6, while the CSI 300 rose 0.2% to 4,646.2.
Hong Kong’s Hang Seng Index declined 0.9% to 25,660.9, and India’s BSE Sensex fell 0.9% to 76,847.6.
European markets ended Monday in negative territory. The UK’s FTSE 100 slipped 0.2% to 10,583.0, Germany’s DAX lost 0.3% to 23,742.4, and France’s CAC 40 declined 0.3% to 8,236.0.



