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Asian stocks waver, oil prices extend gains as Trump escalates threatsJapan's Nikkei index increased 0.7% while shares in South Korea were up 2%. Markets in China and Hong Kong are shut for a public holiday.By CNBCTV18.com April 6, 2026, 6:28:32 AM IST (Published)4 Min ReadAsian stocks edged higher during open, while oil prices extended their gains after US President Donald Trump signaled a likely sharp escalation int he Iran war.

Japan's Nikkei index increased 0.7% while shares in South Korea were up 2%. Markets in China and Hong Kong are shut for a public holiday.

Meanwhile, US equity index futures erased early losses to trade flat.

Brent increased 1.9% to trade above $111 a barrel, as Trump on early Sunday renewed threats to attack Iranian infrastructure if the key energy shipping route via the Strait of Hormuz remains closed. He followed it later with another that said: “Tuesday, 8:00 P.M. Eastern Time!” with no further explanation.

Trump’s comments came as OPEC+ warned that damage to West Asian energy assets will have a prolonged impact on oil supply even after the conflict ends. Yet there are few signs of progress toward a ceasefire as attacks have continued to flare around the region, keeping oil prices hovering well above $100 a barrel.

The fallout from the war has rapidly darkened the economic outlook by threatening to cool growth and push up already elevated inflation, roiling bets on whether the Federal Reserve will resume cutting interest rates later this year. Attention remains firmly on energy prices and the closure of the Strait of Hormuz — a waterway crucial for the flow of oil from the Middle East.

Investors will watch for the impact of the surge in crude oil when monthly US inflation data is released Friday. The roughly $1-per-gallon increase in US gasoline pump prices probably drove the March consumer price index up 1%, the most since the post-pandemic inflation surge in 2022, according to an economist survey before the report is published.

In other corners of the market, gold fell 1% to about $4,630 an ounce and silver dropped 1% to around $72 an ounce. The Bloomberg Dollar Spot Index rose 0.1%, while Treasury futures edged lower.

Last week, the S&P gauge rose 3.4% fueled by short covering and speculation early in the week that Trump was poised to begin wrapping up US military operations. The gains left the index just 5.7% below its January record.

But on Thursday, the last trading day of the holiday-shortened week, US stocks initially opened lower after Trump’s televised evening address dashed optimism he would layout a solid timeline for concluding the war. Equities later recovered the losses on reports that Iran was talking with Oman about ways to handle shipping traffic through Hormuz.

Even so, West Texas Intermediate crude ended above $110, rising 11% Thursday, while the global Brent benchmark settled near $109. Meanwhile, OPEC+ warned that damage to Middle East energy assets will have a prolonged impact on oil supply even after the Iran war ends, as it approved a symbolic increase in output quotas for next month.

Meanwhile, on Friday, US Treasuries fell after a stronger-than-forecast reading on March employment prompted traders to pare bets on Fed rate cuts. That marked a shift from much of last week, when bonds gained as the attention shifted from the inflation implications of the energy-price spike to speculation that rising costs to consumers and businesses will slow the pace of growth.

The US added 178,000 jobs last month, higher than all estimates in a Bloomberg survey.

Meanwhile, the Islamic Republic’s continued attacks damaged Kuwait’s oil headquarters and shut down an Emirati petrochemicals plant. Fifteen ships have passed through the Strait of Hormuz with permission from Iran, semi-official Fars news agency reports, citing the latest data on strait traffic.

Trump has previously dialed back his escalation threats, including two weeks ago before markets reopened for the week. Trump also said he plans to hold a news conference at 1 pm New York time on Monday.

With inputs from Bloomberg

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