Asian Markets Rally Despite Escalating US-Iran Conflict: US Forces Struck Three Iranian Oil Tankers After Warships Targeted By Ballistic Missiles Iran Announces Restricted Zone Outside Hormuz Nikkei 225 Futures At 66,085 Prior Close 65,020 KOSPI Advances 3.65% ASX 200 Flat Hang Seng Down 1% Brent Adds 0.2% To $96.45 After Climbing 10% Last Week US Energy Secretary Wright: Nuclear Deal May Not Happen Markets Pricing Rate Hike Risk From Four Major Central Banks
According to Seeking Alpha and CNBC, Asian equity markets rallied on Monday, September 7, 2026, even as US-Iran tensions escalated sharply; with the United States striking three Iranian oil tankers after saying warships were targeted with ballistic missiles, prompting Iran to announce a restricted zone outside the Strait of Hormuz. Asian stocks poised to rise as Iran tensions lift oil prices | Seeking Alpha +2
Japan’s Nikkei 225 added nearly 2%, while the Topix rose 0.33%. The Kospi advanced 3.65%, while the small-cap Kosdaq gained 1.08%. Australia’s benchmark S&P/ASX 200 was flat. Hong Kong’s Hang Seng index was down nearly 1%, while mainland China’s CSI 300 inched 0.19% higher.
Oil edged higher, with Brent adding 0.2% to reach $96.45 a barrel, having climbed almost 10% last week. The energy gains follow a week in which Brent extended its fourth gain in five days while diesel reached its highest in more than four months and European natural gas climbed to its highest since 2023.
Higher energy prices pressured bonds, pushing global yields to their highest since 2008. Markets are now pricing more than a 50% chance of a rate hike this month from four major central banks. US Energy Secretary Chris Wright added to the uncertainty, saying a nuclear deal with Iran may not happen anytime soon. “There may not be a nuclear agreement. It may be simply destroying their capabilities to do it.”
The paradox of rising equity markets amid escalating conflict reflects a market logic that is becoming familiar: as long as the US economy remains resilient and the Fed has not yet moved, investors buy the dip. The question is how much more oil can absorb before the Fed moves and the dip becomes something else entirely.
Check out our previous coverage of global markets on The Trusted Times.
