Stocks stagger and oil rises as traders eye Iran threat, Nvidia results

Asian stocks saw fluctuations on Tuesday, August 25, as traders weighed a potential U.S. economic blockade on Iran. The threat intensified oil prices, which had been rising since the sixth month of the war against Tehran. Treasury Secretary Scott Bessent stated that the White House was declaring a "economic D-Day" against Iran and threatened to hit countries trading with the Islamic republic. His comments came as talks to reopen the Strait of Hormuz remained stalled and neither side showed signs of backing down.

The Treasury Department targeted Iran's digital assets, technology, gold, aviation, and shipping sectors for sanctions. President Trump was reportedly making phone calls to world leaders to urge them to stop interactions with Tehran. Both main contracts fell over two percent on Monday, as Bessent's comments suggested the U.S. would hold off on military action. However, they gradually increased in early Asian trade.

Tech firms faced another down day on Wall Street, struggling after Nvidia's earnings report. Nvidia, a bellwether for the AI boom, had investors eagerly awaiting results. Analysts cautioned that even strong earnings might not justify the already-high expectations for the company. Other tech releases, such as Salesforce and Marvell, also drew attention.

Meanwhile, the U.S. threatened to double tariffs on Canadian vehicles in response to failed negotiations to avert new 50% US tariffs on select Canadian goods. The Canadian dollar edged slightly higher after retreating against the US dollar, as Trump vowed to push down borrowing costs by buying back more of his own bonds.