Why are Asian stocks expected to rise despite the Iran-US deadlock?

Asian stocks are set to rise Tuesday, tracking Wall Street gains, as investors remain bullish amid strong US first-quarter earnings and expectations that heavy AI-related spending—particularly across Asia—will anchor earnings growth and offset the oil supply shock from Middle East tensions; according to BlackRock’s Jean Boivin, 'Markets are pricing both AI-driven growth and the Middle East supply shock,' and the buildout of AI data centers is explicitly said to be 'offsetting the oil supply shock’s “drag on growth.”'

What impact has the Iran conflict had on oil prices and US monetary policy expectations?

Oil jumped 3.4% to over $104 a barrel after President Trump called Iran’s response to a ceasefire proposal 'totally unacceptable' and declared the ceasefire 'on life support,' while the Treasury market responded by pricing out odds of Federal Reserve rate cuts this year amid the Middle East conflict, leading Goldman Sachs and Bank of America to push back their rate-cut forecasts until at least year-end due to elevated inflation and resilient jobs data.

Asian Stocks to Rise, Oil Gains on Iran Deadlock: Markets Wrap

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Asian Stocks to Rise, Oil Gains on Iran Deadlock: Markets Wrap

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