Shares and bonds steady as oil eases on Trump's Iran comments

By Rae Wee and Harry Robertson

Tue, May 19, 2026 at 4:35 AM EDT 3 min read

By Rae Wee and Harry Robertson

SINGAPORE/LONDON, May 19 (Reuters) - Global stock and bond markets steadied on Tuesday after U.S. President Donald Trump paused a planned attack on Iran and said there was a good chance of a nuclear deal, sending oil ‌prices lower.

Trump said on Monday he had halted a planned resumption of attacks against Iran to allow time for negotiations to ‌take place on a deal to end the war, after Tehran sent a new peace proposal to Washington.

He subsequently said there was a "very good chance" the U.S. could reach an ​agreement with Iran to prevent Tehran from obtaining a nuclear weapon.

Investors remained cautious, after being rattled in the previous session by a weekend drone strike in the United Arab Emirates.

European stocks rose 0.7% in early trading, further recovering ground lost on Friday when they dropped 1.5% as bond market jitters spread to equities.

Futures for the U.S. S&P 500 were little changed after the index flatlined on Monday following a 1.2% drop on Friday.

"We've seen a lot of ‌back and forth already," said Fabien Yip, a ⁠market analyst at IG.

"Until we actually see real action happening (in the Strait of Hormuz), whereby ships are passing through safely and we see a material rebound in the numbers of traffic going through in the Strait, I think ⁠the market in general is shrugging off the commentary from either side."

Brent crude futures fell 1.4% to $110.50 a barrel on the back of Trump's comments, while U.S. crude was flat at $108.70 per barrel. Both remained more than 50% above their pre-war levels. [O/R]

MSCI's broadest index of Asia-Pacific shares outside Japan was down more than 1%, while ​Japan's ​Nikkei eased 0.4%.

The all-important artificial intelligence trade will be tested by earnings from ​chipmaker Nvidia that are due on Wednesday, with expectations sky-high ‌for the world's most valuable company.

"Nvidia is the market's shorthand for everything AI and this market's gains have been driven in large part by AI over the past few years," said Richard Reyle, chief investment officer at Questar Capital Partners.

BOND SELLOFF ABATES

The fall in oil prices helped stem a steep selloff in global bonds on Tuesday, although worries remain about any lasting inflationary shock from the Iran war.

Yields on the benchmark 10-year U.S. Treasury note eased from a more than one-year high above 4.63% to 4.597%.

Japanese and European government bond yields - which have also shot higher over the ‌last week - also fell, with British yields dropping the most. Yields move inversely to ​prices.