Public Markets 3 Hours

Last updated: May 27, 2026, 11:30 PM ET

Geopolitical Risk & Oil Markets

Global financial markets underestimate geopolitical risks according to the ECB, as conflict in the Middle East continues to create uncertainty despite seemingly orderly market movements. Oil prices gained on technical corrections in early Asian trade after settling lower on Wednesday, while Chinese crude oil imports are set to drop to pandemic-era levels as demand weakens amid the Iran conflict. Meanwhile, Iran maintains illicit oil exports to China through a clandestine network of aging tankers, with President Trump feeling no political pressure to make a deal despite high oil prices, suggesting the geopolitical tensions could persist.

Asian Markets & Commodities

In Asian markets, Wilmar International plunged the most in almost six years after being named by Indonesian authorities in a probe of suspected export abuses, affecting the palm oil market. China simultaneously sold green sovereign bonds worth $885 million in Hong Kong, returning to the international ESG debt market after a year's absence. Meanwhile, a Nomura analyst questioned market consensus on near-term Bank of Japan interest rate hikes, suggesting geopolitical tensions surrounding the Iran conflict could complicate monetary policy decisions as traders price in potential economic disruptions.