US-Iran Tensions Spike, Rattling Global Markets

On Thursday, May 28, 2026, renewed hostilities between the United States and Iran led to significant market shifts globally, with Asian stocks declining, oil prices surging, and the U.S. dollar strengthening. This escalation, marked by Iranian attacks on a U.S. airbase and air raid sirens in Kuwait, indicates a prolonged conflict in the Middle East and continued disruption to shipping through the Strait of Hormuz.

Brent crude oil prices increased by 3.7% to $97.79 per barrel following the Iranian Islamic Revolutionary Guard Corps' statement of attacking a U.S. airbase and threatening further decisive responses to U.S. actions. Concurrently, MSCI's broadest index of Asia-Pacific shares outside Japan fell by 1.8%, with South Korea's KOSPI down 2.7%. S&P 500 e-mini futures dropped 0.3%, and Nasdaq e-mini futures decreased by 0.7%.

Treasury Department also imposed new Iran-related sanctions

The U.S. Treasury Department also imposed new Iran-related sanctions, adding the Persian Gulf Strait Authority to its Specially Designated Nationals list.

This geopolitical tension has driven investors towards safe-haven

This geopolitical tension has driven investors towards safe-haven assets, pushing the U.S. dollar index up by 0.2% to 99.506.

However, the yield on the U.S. 10-year Treasury bond rose by 5.1 basis points to 4.53% due to revived inflation concerns, with the European Central Bank's chief economist noting the persistent inflationary impact of the Middle East conflict.