Stocks Rebound Amidst Easing Iran War Tensions

Global stock markets experienced a rebound on Tuesday, March 10, 2026, following a rally on Wall Street as investors assessed that the conflict with Iran may not be prolonged. However, early gains in Asia were modest compared to Monday’s declines, when oil prices briefly approached $120 per barrel before retreating to around $90.

Asian Markets Show Recovery

Japan’s Nikkei 225 index led the gains, rising 3.2% to 54,399.08, boosted by revised economic data showing stronger-than-initially-estimated growth in the final quarter of 2025. The Japanese economy expanded at an annual pace of 1.3%, a significant increase from the initial estimate of 0.2% Business Times.

Australia’s S&P/ASX 200 increased by 0.8% to 8,669.50. South Korea’s Kospi jumped 3.6% to 5,453.45, even as Hong Kong’s Hang Seng added 1.6% to 25,804.70. The Shanghai Composite index rose 0.4% to 4,119.29.

Oil Prices Retreat, Market Volatility Remains

The shift in market sentiment followed comments from U.S. President Donald Trump suggesting the war with Iran was “very complete, pretty much.” The Hindu BusinessLine. Benchmark U.S. Crude fell $4.70 to $90.07 a barrel, and Brent crude, the international standard, dipped $5.13 to $93.83 a barrel.

Despite the positive turn, analysts cautioned that volatility would likely persist due to ongoing uncertainty surrounding the conflict and potential disruptions to the global oil supply. Concerns remain focused on the Strait of Hormuz, a critical waterway for oil shipments, with Iran having threatened to disrupt shipping lanes.

U.S. Market Rebound

On Monday, U.S. Stocks also staged a remarkable turnaround. The S&P 500 dropped as much as 1.5% before closing with a gain of 0.8% at 6,795.99. The Dow Jones Industrial Average recovered from a nearly 900-point plunge to rise 239 points, or 0.5%, to 47,740.80. The Nasdaq composite climbed 1.4% to 22,695.95. Economic Times.

Stagflation Concerns

The market swings reflect concerns about the potential for “stagflation” – a combination of stagnant economic growth and high inflation – if oil prices remain elevated for an extended period. High energy prices could strain household budgets and increase costs for businesses, potentially hindering economic growth. Business Times.

Bond Market and Currency Movements

In the bond market, the yield on the 10-year Treasury fell to 4.10% from 4.15% late Friday. The U.S. Dollar edged up to 157.85 Japanese yen from 157.67 yen. The euro cost $1.1611, down from $1.1638.