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Oil prices declined while global equities advanced on Tuesday, as renewed signals of a possible agreement between the United States and Iran tempered fears of prolonged disruption in the Middle East.
International benchmark Brent crude slipped about 0.8% to $98.5, while U.S. benchmark WTI dropped 1.8% to $97.3 per barrel as of 6 a.m. GMT, wiping out its premium over Brent as a sign of easing concerns over sustained supply disruptions.
Asian equities moved higher in tandem with falling oil prices. Japan’s Nikkei 225 climbed 2.3%, while South Korea’s Kospi advanced 2.8%. Hong Kong’s Hang Seng and Shanghai Composite both edged up around 0.4%.
In Europe, Stoxx 50 futures rose 0.5%, pointing to a firmer open, while major U.S. indices showed little change.
Precious metals also gained ground. Gold rose 0.5% to $4,767, and silver jumped 1.7% to $76.8 per ounce. Palladium and platinum each added about 0.4%, trading near $1,570 and $2,065, respectively.
Cryptocurrencies mirrored the positive sentiment, with bitcoin surging 4.8% to $74,400 and Ethereum climbing more than 7.8% to $2,366.
Investor mood improved despite the latest round of weekend talks in Pakistan ending without a formal agreement. Both sides, however, indicated progress, with Iranian officials noting negotiations had come "inches away" from a deal at one stage.
Shortly after, Donald Trump announced a naval blockade targeting Iranian ports, raising alarms over energy flows through the Strait of Hormuz, a key route for roughly one-fifth of global oil and gas shipments.
The U.S. military clarified that Iranian ports would be blockaded starting Monday at 1400 GMT, while vessels not linked to Iran would still be allowed to transit the strait. Oil prices initially surged as much as 8% following the announcement, while Asian stocks dropped sharply. That reaction, however, reversed as fresh diplomatic signals emerged.
Market optimism strengthened after Trump indicated that Iranian representatives had reached out. "They’d like to make a deal. Very badly, very badly," he told reporters outside the Oval Office.
A new round of negotiations is now being weighed for April 16, with Islamabad and Geneva emerging as potential venues, reports suggested.
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