Kuala Lumpur, 12 June 2026 – Asian investors are watching the Middle East with renewed caution after US President Donald Trump signalled a sudden shift away from further military escalation against Iran, raising hopes that diplomatic talks could move closer to a possible peace framework.
The development has injected a measure of relief into global markets after days of heightened geopolitical tension. Investors had been bracing for a broader confrontation that could disrupt energy flows, lift oil prices and pressure inflation-sensitive economies across Asia. Trump’s decision to pull back from planned strikes, while still maintaining pressure through a naval blockade, has therefore created a fragile opening for risk assets.
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