Asian Stocks Waver as US Tightens Iran Pressure

WASHINGTON: (News Desk) – Asian stocks traded unevenly Tuesday as investors weighed Washington’s latest economic pressure campaign against Iran, while oil prices edged higher amid uncertainty over the Strait of Hormuz. Technology shares remained under pressure following another weak session on Wall Street, with investors also awaiting Nvidia’s highly anticipated earnings report.

US Treasury Secretary Scott Bessent said Monday that the White House was launching an “economic D-Day” against Tehran, warning countries and companies that continue doing business with Iran could also face consequences. The administration aims to cut off the financial and economic channels supporting the Iranian government.

Bessent said Washington would target Iran-linked digital assets, technology, gold, aviation and shipping sectors as part of the intensified sanctions campaign. President Donald Trump was also contacting foreign leaders and urging them to reduce economic engagement with Tehran.

The tougher economic measures come as negotiations over reopening the Strait of Hormuz remain stalled. With the conflict now in its sixth month, markets remain concerned that prolonged disruption could keep energy prices elevated and add to inflationary pressures.

Oil prices initially fell sharply after Bessent’s comments appeared to signal that Washington was prioritizing economic measures over immediate military escalation. However, crude prices moved higher again during early Asian trading.

Stephen Innes, global strategist at Quintex Intel, said the US strategy appeared aimed at restricting Tehran’s access to international finance while avoiding an immediate escalation in military risks. Lower expectations of military action could provide some relief to inflation-sensitive markets, although uncertainty remains high.

Asian technology stocks were among the weakest performers. South Korea’s benchmark fell more than two percent at one stage, with chipmakers SK hynix and Samsung Electronics retreating. Hong Kong, Shanghai, Taipei and Manila also traded lower, while Tokyo, Sydney, Singapore and Wellington posted gains.

Investor attention is increasingly focused on Nvidia’s upcoming results, as the chipmaker remains a key indicator of the strength of the global artificial intelligence investment boom. Markets are questioning whether the company can deliver earnings growth strong enough to justify its elevated valuation and expectations.

Salesforce and Marvell Technology are also among the technology companies scheduled to report results, adding to an important week for the sector.

Markets are also watching the annual gathering of central bankers and economic officials in Jackson Hole, Wyoming. Federal Reserve Chair Kevin Warsh is expected to offer clues about the outlook for monetary policy as policymakers continue to grapple with persistent inflation and elevated bond yields.

Meanwhile, the Canadian dollar edged higher against the US dollar after President Trump threatened to double tariffs on vehicles imported from Canada. The move followed failed negotiations between Washington and Ottawa over new US tariffs, with Canada preparing retaliatory measures.