Global oil prices declined on Monday while most Asian stock markets posted gains amid growing optimism over renewed diplomatic talks between the United States and Iran aimed at easing tensions in the Middle East.
The negotiations, held in Switzerland, brought together delegations led by US Vice President JD Vance and Iran’s Mohammad Bagher Ghalibaf. The talks resumed after being delayed by regional fighting and were described by mediators Pakistan and Qatar as “positive and constructive.”
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Both sides agreed to establish a direct communication channel to prevent incidents in the Strait of Hormuz, a strategic shipping route that carries about one-fifth of the world’s oil and gas supplies. Mediators also announced a roadmap toward a final agreement within 60 days, with further technical discussions set to begin immediately.
The positive developments helped ease concerns over global energy supplies, leading to a decline in crude prices. Brent crude fell 1.5 percent to $79.38 per barrel, while US West Texas Intermediate dropped 0.5 percent to $75.47 per barrel.
Investor sentiment also improved across major Asian markets. Japan’s Nikkei index rose 2 percent, South Korea’s Kospi gained 1.3 percent, and Taiwan’s market jumped 2.7 percent, driven largely by strong performances from technology and semiconductor companies.
However, some markets remained cautious. Hong Kong, Shanghai and Singapore closed lower as investors continued to monitor geopolitical risks and the fragile situation in the Middle East.
Analysts said market optimism remains tempered by uncertainty, warning that oil prices could still be volatile if regional tensions escalate again.
Meanwhile, the British pound remained under pressure amid political uncertainty in the United Kingdom, as speculation grew that Prime Minister Keir Starmer could step down following increasing pressure within the Labour Party.
Overall, investors welcomed the progress in US-Iran diplomacy, viewing it as a positive step toward stabilizing global energy markets and reducing geopolitical risks.
