Market Update: Asian Stocks Surge Amid Iran Conflict Developments
Asian stocks experienced their strongest day in several months, and S&P 500 futures climbed after the president announced he would deliver a “significant update” on Iran on Wednesday evening. Meanwhile, oil prices have reportedly stabilized as the United Arab Emirates (UAE) prepares to assist in the armed reopening of the Strait of Hormuz.
Bitcoin increased by 0.2% in the last 24 hours, trading at $67,950 on Tuesday. This surge is largely fueled by growing optimism regarding a potential resolution to the conflict in Iran, which has positively impacted risk assets. Ether saw a 1.6% rise to $2,100, marking its most significant daily price increase in weeks.
XRP and Dogecoin both rose by 0.5%, reaching $1.34 and $0.09 respectively, while BNB increased by 0.4% to $616. In contrast, Solana’s SOL lagged, decreasing by 0.7% to $83.14, resulting in an 8.7% loss this week.
The MSCI Asia-Pacific index surged by 4%, marking its best session since the post-war period, with nearly ten stocks gaining for every decline. Tech stocks in Asia jumped by 6.5%, with Samsung and SK Hynix each rising more than 9%. Additionally, S&P 500 futures rose, registering the index’s largest single-day gain since May.
This market momentum was triggered by President Trump’s comments to reporters, expressing his expectation that the conflict would conclude within two to three weeks. He indicated that a deal with Iran was not essential for peace. His national address is scheduled for Wednesday at 9 p.m.
Meanwhile, Iranian President Masoud Pezeshkian informed the President of the EU Council that Iran is willing to end the war, but seeks guarantees against future hostilities.
In a related report, the Wall Street Journal stated that the UAE aims to support the United States and allies in forcibly reopening the Strait of Hormuz, making it the first Gulf nation to engage as a combatant. Following this news, Brent crude oil prices rose slightly above $105 after a decline on Tuesday.
Cryptocurrency markets have been reacting more gradually than stock markets, a trend observed over the past few weeks. Bitcoin fluctuated between $65,000 and $73,000 during the conflict, while stock prices saw significant volatility. The difference between the stable range of cryptocurrencies and the stock market fluctuations remains a key observation in the overall asset landscape.
Beyond geopolitical factors, there is cautious optimism stemming from other developments. Morgan Stanley has approved a Bitcoin ETF with a low fee of just 14 basis points, which is below the average for similar products. This allows access to Morgan Stanley’s 16,000 financial advisors who manage $6.2 trillion—an avenue that previously lacked direct exposure to Bitcoin ETFs.
Two Prime CEO Alex Bloom highlighted three factors that could potentially drive Bitcoin prices higher in the second quarter: the successful rollout of the Morgan Stanley ETF, STRC’s preferred stock product for funding Bitcoin purchases, and a swift resolution to the Iran conflict.
“Many of the market uncertainties may be resolved quickly,” Bloom shared in an email to CoinDesk. “Coupled with new purchasing power, we could see a strong second quarter.”
Gold prices rose to nearly $4,700 for four consecutive days, yet March recorded a roughly 12% drop, marking its worst monthly performance since October 2008. This trend of declining precious metals during ongoing wars defies historical patterns.
Whether Trump’s upcoming speech will provide a genuine pathway to de-escalation or merely add to the month’s barrage of headlines could influence the durability of this rally. “There’s uncertainty about the long-term outlook. Investors will certainly seek concrete signs that the end of the war is approaching,” commented one analyst.
