On Wednesday, investors in Asian markets tracked developments tied to U.S.-Iran negotiations and the prospect that diplomacy could resume to end the war. Japan’s Nikkei 225 rose, while South Korea’s Kospi and parts of the region fell, as traders balanced expectations for talks against ongoing uncertainty about how the conflict’s economics will evolve.
Oil prices were steady in early trading. Brent crude rose 1 cent to $98.51 a barrel, while U.S. benchmark crude fell 0.4% to $89.29, according to the report. The backdrop for energy markets remained the strategic importance of the Strait of Hormuz, a key route for Persian Gulf crude shipments; blockages there have helped push oil prices higher in the past.
President Donald Trump said he was extending the ceasefire with Iran at Pakistan’s request, while awaiting what he called a “unified proposal” from Tehran. The report also said the U.S. military was keeping its blockade of Iranian ports, a factor that continues to shape expectations for supply and pricing.
In the run-up to Wednesday, the report said U.S. shares had initially been supported by signs that diplomats were working through back channels to arrange another round of talks between Washington and Tehran. That optimism was tempered on Wednesday in the U.S., when the report said the S&P 500 erased an early gain after Vice President JD Vance called off a trip to Pakistan that had been expected to lead U.S. negotiators.
Across the region, the Nikkei 225 gained 0.5% to 59,653.56 and Taiwan’s Taiex rose 1.1%. The Kospi in South Korea edged 0.2% lower to 6,374.46, while Hong Kong’s Hang Seng fell 1.3% to 26,137.59. Australia’s S&P/ASX 200 declined 0.9% to 8,866.20, and the Shanghai Composite rose 0.1% to 4,090.24, according to the report.
In the United States, benchmark crude prices also showed modest movement. The report said benchmark U.S. crude inched up 1 cent to $91.29 a barrel, while Brent added 48 cents to $95.27. It noted that Brent was still above its roughly $70 level from before the war began in late February, but well below a peak level of $119.
The report also linked the oil-price path to expectations for inflation and bond markets. It said global inflation this year looked set to accelerate to 4.4% from 4.1% in 2025, according to the International Monetary Fund, which earlier had expected inflation to slow to 3.8%. The IMF also downgraded its forecast for global economic growth to 3.1% this year from 3.3% it had forecast in January, and as oil prices eased, Treasury yields fell, with the 10-year yield dropping to 4.25% from 4.30% late Monday.
In currency trading, the report said the U.S. dollar fell to 159.27 Japanese yen from 159.38 yen, and the euro cost $1.1746, down from $1.1744. The broader message for markets was that even small shifts in ceasefire policy, port blockades, and talk timelines can feed directly into energy costs and investor expectations about inflation—especially when Strait of Hormuz access remains central to global supply.