Asian equity markets were mixed on Wednesday as oil prices rose amid a deadlock in negotiations to end the Iran‑U.S. conflict and a continued closure of the Strait of Hormuz.
The United States has indicated that President Donald Trump’s administration is reviewing Tehran’s latest proposal to restore shipping through the strait, but both CNN and the Wall Street Journal reported that the president remains skeptical. Iran submitted a plan this week that would ease the maritime blockage in exchange for the United States ending its retaliatory sanctions on Iranian ports. U.S. Secretary of State Marco Rubio said the Iranian offer was “better than what we thought they were going to submit,” but added that any agreement must “definitively prevent them from sprinting toward a nuclear weapon.”
Iranian defence ministry spokesman Reza Talaei‑Nik warned Washington to abandon “illegal and irrational demands,” asserting that the United States can no longer dictate policy to independent nations. Qatar cautioned that without a definitive resolution the region faces a “frozen conflict.”
The stalemate has lifted crude prices for a second week. Brent crude traded around $112 a barrel, above the level recorded before the cease‑fire announced in early April, while West Texas Intermediate broke the $100 mark at $100.62, up 0.7 %. Stephen Innes of SPI Asset Management noted that “Iran wants the blockade lifted and access to its flows restored. Washington holds that lever and is in no hurry to give it away without extracting value,” adding that prolonged delays are creating storage pressure and production risks that are beginning to affect futures prices.
The market reaction was muted despite United Arab Emirates’ decision on Friday to withdraw from OPEC and OPEC+ – a move the emirate described as strategic. Sources cited by CNN said diplomatic efforts continue, with talks focusing on a staged process that could first restore pre‑war conditions and reopen the Strait of Hormuz.
Equity markets showed divergent performance: Hong Kong’s Hang Seng Index rose 1.1 % to 25,951, Shanghai’s Composite gained 0.2 % to 4,084.68, while Sydney, Singapore, Seoul and Taipei indices fell. In the United States, the Nasdaq led a sell‑off after a Wall Street Journal report that OpenAI missed its user‑growth and revenue targets, pressuring technology stocks ahead of earnings releases from Amazon, Google, Meta and Microsoft.
Investors also awaited the Federal Reserve’s decision later in the day, watching for clues on inflation and interest‑rate policy as energy costs climb. Currency markets were relatively steady, with the euro at $1.1715, the pound at $1.3522 and the yen at 159.60 per dollar.
The situation underscores the broader geopolitical risk premium on oil and the intertwined impact of diplomatic developments on global markets. Continued negotiations and any movement on the Strait of Hormuz will likely shape commodity prices and investor sentiment in the weeks ahead.
