Global Stock Markets Rise as US Expands Sanctions Against Iran

Global stock markets mostly advanced on Tuesday, August 25, 2026, while crude oil prices declined following the announcement of fresh U.S. sanctions against Iran by Treasury Secretary Scott Bessent, alongside warnings to foreign business partners.

European markets logged solid gains, with Germany's DAX rising 0.5% to 26,240.76 and France's CAC 40 advancing 0.3% to 8,480.52. Britain's FTSE 100 edged up 0.1% to 10,869.93, while U.S. futures pointed to a higher open.

Asian trading reflected similar strength as Tokyo's Nikkei 225 increased 0.5% to 65,856.43 and South Korea's Kospi rebounded 0.7% to 6,742.74. Technology giant SoftBank Group jumped 2.3% in Tokyo as investors returned to tech shares.

Hong Kong's Hang Seng index closed nearly flat at 25,511.10, whereas the Shanghai Composite added 0.2% to reach 3,889.44. Australia's S&P/ASX 200 gained 0.7% to 9,164.60, and Taiwan's Taiex surged 0.9% while India's Sensex dropped 0.2%.

Energy markets saw sharp pullbacks as Brent crude fell 2% to $88.74 per barrel, dropping from recent high levels above $72 recorded before conflict broke out in late February. U.S. benchmark crude dropped 2.2% to $83.14 per barrel.

The pullbacks in oil followed fresh economic measures by Washington that drove the Iranian rial to a historic low against the greenback. Meanwhile, foreign exchange markets saw the U.S. dollar strengthen to 159.30 Japanese yen, while the euro rose slightly to $1.1670.

Wall Street experienced mixed movements on Monday, with tech sector losses weighing down major indexes. The S&P 500 dipped 0.3% and the Nasdaq composite lost 0.8%, led by Nvidia dropping 2.9%, Micron Technology sliding 5.8%, and Broadcom falling 2.6%.

Bond markets stabilized as 10-year Treasury yields eased to 4.69% from 4.74%, reversing earlier pressures after the U.S. Treasury Department expanded its planned bond buybacks to manage borrowing costs.

Market analyst Stephen Innes highlighted the temporary relief created by the federal government's bond interventions, though he raised concerns regarding long-term structural debt solutions.

"The latest discussion about using Treasury General Account cash to help finance purchases of longer-dated bonds gave the market something to chew on Monday, and it initially liked the taste. Long yields fell, and the curve flattened," said Stephen Innes, market analyst at SPI Asset Management.

Analyst commentary noted that government intervention alone might not resolve systemic issues driving up yields.

"But there is a difference between forcing the bond market to blink for an afternoon and solving the underlying problem," he said.

Investors are turning their focus to a scheduled speech on Friday by Federal Reserve Chairman Kevin Warsh at the annual economic symposium in Jackson Hole, Wyoming, where he is expected to outline the central bank's strategy on inflation.