On Friday (27 March, 9:11 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited a downward trend, mirroring losses from U.S. markets overnight as investors weighed uncertainty over Middle East peace efforts amid conflicting signals from Washington and Tehran. The risk-off sentiment extended across regional markets after President Donald Trump postponed a previously set Friday deadline for military action against Iran’s energy facilities, granting a 10-day extension to April 6 to allow further negotiation.
The pause in escalation came following a request from Iran’s government, according to Trump, who stated that the deferment was given in return for the passage of 10 oil tankers through the Strait of Hormuz. Trump communicated on social media that the destruction of Iranian energy plants would be halted temporarily while discussions continued, characterizing the ongoing diplomatic engagement as positive despite reports suggesting otherwise.
In recent statements, U.S. officials emphasized their preference for a negotiated settlement, with the administration maintaining that talks with Iran remain active. However, Iranian authorities have repeatedly stated that there are no direct talks with the United States. The Islamic Republic reportedly turned down a 15-point American proposal and submitted its own terms, including non-resumption of attacks by the U.S. and Israel and official recognition of its control over the crucial strait for global oil flows.
According to the Wall Street Journal, the U.S. Department of Defense is evaluating the deployment of up to 10,000 additional troops to the Middle East. Earlier, Trump indicated that military operations would intensify if Iran did not agree to U.S. demands, and he warned of continued force until hostilities ceased.
Moreover, U.S. Treasury Secretary Scott Bessent announced that a new federal insurance scheme for shipping through the Strait of Hormuz is set to launch soon, aiming to support the restoration of key global energy supply routes.
Japan’s NIKKEI fell by 1.19% to 52,968.23. South Korea’s KOSPI dropped 3.06% to 5,293.31, and Australia’s ASX 200 dipped by 0.50% to 8,482.80.
As for stocks in China, Shanghai’s SSEC slid by 0.15% to 3,883.11. Shenzhen’s SZI decreased by 0.32% to 13,562.45, and Hong Kong’s HSI shrank by 0.43% to 24,750.75.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) lost 1.01% to 45,960.11. NASDAQ slumped by 2.38% to 21,408.08, and S&P 500 plummeted by 1.74% to 6,477.16. VIX surged by 8.33% to 27.44.
As for commodities, oil prices settled higher on Thursday, driven by diminishing prospects for a prompt resolution to the conflict in the Middle East. Brent crude ended the session with a gain of $5.79, or 5.7%, closing at $108.01 per barrel. U.S. West Texas Intermediate futures climbed $4.16, or 4.6%, to finish at $94.48 per barrel.
Meanwhile, the prices declined on Friday, following remarks by Donald Trump regarding the postponement of military action against Iranian energy infrastructure. This morning, Brent declined $2.19, or 2.03%, to $105.82 per barrel, and the WTI dropped $1.95, or 2.06%, to $92.53 per barrel.
Meanwhile, gold futures rose by 1.01% to $4,420.40 per Troy ounce.
