Morning Wrap: US Strikes Iran – What’s Next for the Negotiations?
Date: 26 May 2026
Market Overview
On Monday, markets experienced significant gains, largely influenced by reports suggesting that the United States and Iran were close to finalizing a 14-point memorandum. The German DAX and the pan-European Euro Stoxx 50 both rose by 2%, with other European indices also showing positive movement. In the US, S&P 500 and Nasdaq Composite futures were up, although cash markets were closed in observance of Memorial Day.
Geopolitical Developments
Both the US and Iranian officials expressed optimism regarding the negotiations. US Secretary of State Marco Rubio indicated that the talks were about 90-95% complete, with positive news expected soon. Iranian Foreign Ministry spokesperson Esmail Baghaei confirmed that the gaps in negotiations were narrowing.
However, overnight reports indicated that US forces conducted a strike on facilities in southern Iran, targeting missile launch sites and vessels involved in mining the Strait of Hormuz. Rubio reassured that these military actions would not hinder the ongoing negotiations, which are currently focused on finalizing the language of a potential agreement in Qatar.
Additionally, Israeli forces reportedly conducted strikes in southern Lebanon, with Prime Minister Benjamin Netanyahu emphasizing a commitment to intensify military actions.
Asian Market Sentiment
Asian markets displayed mixed sentiment. The South Korean Kospi reached new highs, increasing by 2.8%, while the Nikkei 225 and Shanghai SE Composite indices fell by 0.4% and 0.8%, respectively.
Currency Movements
In early trading, the US dollar showed signs of recovery against all G10 currencies, with the New Zealand dollar and Scandinavian currencies experiencing the most significant declines, down by 0.3-0.4%.
Commodity Prices
Crude oil prices rose again due to renewed geopolitical tensions, with WTI trading at $92 and Brent at $98.30, both up approximately 2%. Conversely, gold prices fell by 0.9%, hovering around $4,530 per troy ounce, likely influenced by a rise in US Treasury yields.
Cryptocurrency Market
The cryptocurrency market also faced downward pressure, with Bitcoin decreasing by 0.5% to around $76,800, and Ethereum showing similar losses.