Asian markets fall as Iran rejects us ceasefire proposal

Thursday 26 March 2026 - 09:40

By: Dakir Madiha

Asian markets fall as Iran rejects us ceasefire proposal

Asian stock markets declined and oil prices rose on Thursday after Iran rejected a US-backed ceasefire proposal, dimming hopes for a swift resolution to the conflict now entering its fourth week.

Japan’s Nikkei 225 slipped 0.3 percent, while South Korea’s Kospi dropped 1.9 percent. Hong Kong’s Hang Seng fell 1.4 percent and Shanghai’s composite index lost 0.6 percent. US futures also edged down by 0.1 percent, reflecting broader market uncertainty.

Oil prices climbed as geopolitical risks intensified. Brent crude rose 1.3 percent after briefly falling below 95 dollars a day earlier, while US benchmark crude gained 1.6 percent. Prices have surged about 40 percent since the war began on February 28, when the United States and Israel launched strikes against Iran.

The market reaction followed Iran’s rejection of a 15 point ceasefire plan proposed by the administration of Donald Trump and conveyed through Pakistan. Iranian Foreign Minister Abbas Araghchi said Tehran would not consider negotiations. Instead, Iran issued a counterproposal demanding war reparations, guarantees against future conflict, and sovereignty over the Strait of Hormuz, conditions widely viewed as unacceptable to Washington.

The Strait of Hormuz remains central to the crisis. The strategic waterway, which typically carries about one fifth of global oil supply, has been largely closed since the early days of the war. Forces from the Islamic Revolutionary Guard Corps have restricted maritime traffic through attacks and mining operations.

Earlier optimism had briefly lifted markets after Trump delayed a deadline tied to potential strikes on Iranian infrastructure. The S&P 500 rose 0.5 percent and oil prices dropped more than 5 percent on Wednesday. That sentiment reversed after Tehran’s firm rejection of the ceasefire plan.

The White House said diplomatic contacts between the United States and Iran are ongoing, while warning of stronger military action if talks fail. Mediators from Pakistan and Egypt are working to arrange direct negotiations between US and Iranian officials.

Fighting continues across the region. Israel carried out air strikes on Tehran, while Iran expanded attacks targeting Gulf countries, including a strike that caused a fire at Kuwait International Airport. The Pentagon has deployed at least 1,000 paratroopers from the 82nd Airborne Division to the region, adding to existing US forces.

The conflict has caused more than 1,500 deaths in Iran, nearly 1,100 in Lebanon, 20 in Israel, and 13 US military fatalities, according to Associated Press. Gold prices fell 0.8 percent, while the US dollar weakened slightly against the yen.