World stocks and oil prices are mixed after the US launches strikes in
southern Iran
[May 26, 2026] By
ELAINE KURTENBACH
Shares were mixed Tuesday in Europe and Asia after the U.S. military
said it carried out what it called “self-defense” strikes in southern
Iran, including on missile launch sites and boats placing mines.
The attacks came even as President Donald Trump said on social media
that negotiations on ending the war were “proceeding nicely.”
In early European trading, Germany's DAX lost 0.7% to 25,214.08, while
the CAC 40 in Paris shed 0.9% to 8,187.07. In Britain, the FTSE 100
gained 0.7% to 10,540.40.
The futures for the S&P 500 and the Dow Jones Industrial Average were up
0.5%.
Oil prices were mixed, with Brent crude rising but still trading below
$100 a barrel while U.S. benchmark crude oil fell.
The U.S. military said the strikes Monday were done “to protect our
troops from threats posed by Iranian forces.” It said it used restraint
due to the ceasefire with Iran, which gave no official response. Further
details were not immediately available, including more specifics on
threats from Iran and what this means for negotiations.
With the status of peace talks with Iran unclear, markets have been
swayed by various developments and comments by Trump.
“Markets are behaving as though a full Iran breakthrough already exists,
even though the hardest parts of the negotiation remain unresolved,”
Stephen Innes of SPI Asset Management wrote in a commentary. “Washington
continues to signal optimism, while Tehran insists no agreement is
imminent.”
During Asian trading, Tokyo's Nikkei 225 lost 0.3% to 64,996.09, falling
back from an all-time high close over 65,000 on Monday.
In Hong Kong, the Hang Seng index was nearly unchanged at 25,599.45,
while the Shanghai Composite index shed 0.2% to 4,145.37.
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A person stands in front of an electronic stock board showing
Japan's Nikkei index, seen through the glass wall of an office
building Monday, May 25, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
 South Korea's Kospi jumped 2.6% to
8,047.51, catching up after markets were closed Monday for a
holiday.
The S&P/ASX 200 in Australia lost 0.4% to 8,657.80.
Benchmark U.S. crude oil declined $3.67 to $92.97 a barrel. Brent
crude, the international standard, gained $3.03 to $96.45 a barrel
after falling nearly $5 on Monday.
U.S. markets were closed on Monday for the Memorial
Day holiday. On Friday, the S&P 500 added 0.4% and the Dow
industrials climbed 0.6%. The Nasdaq composite gained 0.2%.
Global markets advanced Monday after regional officials in the
Middle East said the United States was close to reaching an
agreement with Iran to end the war, reopen the Strait of Hormuz and
see Iran give up its stockpile of highly enriched uranium. But it's
not clear when or how the deal might be finalized and when its
various parts will take effect.
An end to the war would ease concerns throughout a region that saw
Gulf havens and travel hubs like the United Arab Emirates struck by
Iranian missiles and drones.
It would allow for global shipping, including an estimated 20% of
the world’s oil, to resume flowing through the Strait of Hormuz. It
also would allow the rebuilding of energy and other infrastructure
in the region.
In other dealings early Tuesday, the U.S. dollar rose to 159.09
Japanese yen from 158.91 yen. The euro cost $1.1636, down from
$1.1645.
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