Stocks in Japan and Australia opened lower, indicating headwinds to sentiment after two days of advances for gauges of the region’s stocks. Markets in Hong Kong were also set to reopen after the Lunar New Year holiday, while those in mainland China remained closed. The dollar was poised to reach its best week since mid-November.
US markets
Powered by
On 20 February 2026, 02:30 AM IST
S&P 500 Top Gainers
profiteers»
S&P 500 Top Losers
losers»
Crude rose after President Donald Trump said the U.S. must make a “meaningful deal” with Iran, adding that the next 10 days will tell whether a deal will be reached. Treasuries rose on Thursday with gold hovering around $5,000 an ounce. US stocks also fell, with alternative asset managers facing sharp declines after private credit funds halted redemptions.
Markets have regained caution as the US move on Iran introduced a new level of geopolitical risk, stalling a temporary recovery in equities and dampening broader risk appetite. Renewed tensions threaten to derail a nascent recovery that has begun to take hold after weeks of volatility driven by concerns about AI-related disruption across sectors and companies.
According to Dennis Folmer at Montis Financial, with Iran’s military proxies so weakened and the economy in crisis, the country may not find itself in a very strong negotiating position, so markets expect a diplomatic solution.
Live events
“Right now, tensions between the US and Iran don’t value stocks,” he said.
The US military is deploying a large number of forces to the Middle East, including two aircraft carriers, fighter jets and refueling tankers, giving Trump the option of a major strike against Iran as he presses the country to make a deal on its nuclear program.
A US military build-up in the Middle East means Iran’s window to reach a diplomatic deal on its nuclear activities risks closing, according to the head of the United Nations nuclear watchdog. A potential war would threaten flows from a region that pumps a third of the world’s oil.
“Crude oil prices are rising in anticipation of possible military action in Iran,” said Louis Navellier at Navellier & Associates. “The US and Iran are expected to meet again, and those talks are expected to be closely watched.”
West Texas Intermediate traded below $67 a barrel after adding nearly 7% in the previous two sessions, while Brent closed near $72.
Some traders also blamed a risk-off mood for caution ahead of Friday’s readings on the economy and inflation, particularly after minutes from the Federal Reserve’s latest meeting showed renewed concerns about price pressures. Also, the US Supreme Court has scheduled Friday as its next opinion day amid global anticipation for a ruling on Trump’s signature tariffs.
Blue Owl Capital Inc. A decision by the U.S. Bank to restrict withdrawals from one of its private credit funds also weighed on investors who raised concerns about risks beneath the surface of the $1.8 trillion market. Its shares sank nearly 6% on Thursday, dragging down industry peers such as Apollo Global Management Inc., Ares Management Corp. and TPG Inc.
Traders also kept an eye on the latest US economic readings.
On Friday, the government will issue its first estimate of gross domestic product for the fourth quarter, including the longest federal government shutdown. The latest report card on the economy projected growth to cool to a steady-firm annual pace after expanding at the fastest rate in two years in the previous quarter.
(You can now subscribe to our ETMarkets WhatsApp channel)
