Why did Asian shares trade mixed and bonds recover on Tuesday, according to the news?

Asian shares traded mixed and bonds recovered on Tuesday because U.S. President Donald Trump announced he had paused a planned attack on Iran and expressed optimism about reaching a nuclear deal, which eased geopolitical tensions and caused oil prices to fall—Brent crude dropped more than 2% to $109.41 a barrel and U.S. crude fell 1.3% to $107.25—thereby helping stem the previous day's steep bond selloff, with the 10-year U.S. Treasury yield easing from a more than one-year high to 4.5974% in early Asian trade.

What role did Trump’s comments on Iran play in influencing oil prices and market sentiment?

Trump’s comments—that he had paused a planned attack on Iran after Tehran sent a new peace proposal and that there was a 'very good chance' of a U.S.-Iran nuclear deal—directly contributed to a decline in oil prices, with Brent crude falling more than 2% and U.S. crude down 1.3%, as investors interpreted the remarks as reducing near-term risk of supply disruption in the Strait of Hormuz; however, market caution persisted due to earlier instability, including a weekend drone strike in the UAE, and analysts emphasized that tangible evidence of safe shipping through the Strait would be needed before full confidence returns.

Asian Shares Mixed, Bonds Recover as Oil Eases on Trump's Iran Comments

May 18, 2026

Oil prices fell more than 2% following President Trump's decision to pause attacks on Iran, easing geopolitical tensions. Asian markets reacted mixed while bond yields stabilized amid lingering inflation concerns driven by energy price volatility.

reuters

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