Asian Markets Decline as Trump Rejects Iran Oil Proposal

Asian equity markets declined on Tuesday, September 29, 2026, following a sell-off on Wall Street and a surge in crude oil prices. Market pressure intensified as U.S. Treasury yields reached their highest levels since 2007, fueling global concerns over government debt and inflation. Japan's Nikkei 225 and indices in South Korea, Hong Kong, and Taiwan fell, while Australia's S&P/ASX 200 saw slight gains. In China, the Shanghai Composite rose slightly after the State Council discussed macro policies to boost the economy.

Oil prices climbed toward $100 per barrel for Brent crude amid geopolitical instability. Donald Trump rejected a conditional proposal from Iran to reopen the Strait of Hormuz and resume nuclear talks in exchange for the U.S. lifting a blockade on Iranian ports. While some oil flows resumed via Saudi Arabia's East-West pipeline, the rejection sustained upward pressure on energy costs.

Monetary tightening further weighed on sentiment. The Reserve Bank of Australia raised its benchmark interest rate to a 15-year high on Tuesday, following recent rate hikes by the Federal Reserve System and the Bank of Japan. Investors are now awaiting the U.S. Personal Consumption Expenditures inflation reading scheduled for Wednesday to gauge future macroeconomic trends.