Asia-Pacific markets set to open higher as investors assess mixed messaging on Iran war

Trump issued a 24-hour ultimatum threatening to target Iran's civilian infrastructure if a peace deal is not reached, while noting Iranian leadership is negotiating in earnest. The escalation risk increases near-term geopolitical uncertainty, likely to lift defense names, pressure risk assets and potentially push oil prices higher as markets move to risk-off positioning.

Analysis

Trump issued a 24-hour ultimatum threatening to target Iran's civilian infrastructure if a peace deal is not reached, while noting Iranian leadership is negotiating in earnest. The escalation risk increases near-term geopolitical uncertainty, likely to lift defense names, pressure risk assets and potentially push oil prices higher as markets move to risk-off positioning.