Global financial markets showed mixed signals on Wednesday as oil prices edged higher amid stalled peace talks linked to the Iran conflict, raising fresh concerns over energy supply disruptions.
Asian equities fluctuated, reflecting investor uncertainty as efforts to resolve tensions involving Iran remained inconclusive.
The continued closure of the strategic Strait of Hormuz, a key global oil transit route has heightened fears across energy markets.
At the centre of the diplomatic push, the White House indicated that Donald Trump and his team were reviewing a fresh proposal from Tehran aimed at restoring maritime traffic.
However, reports suggested that the U.S. president remained sceptical about the offer.
The proposal reportedly includes steps by Iran to ease its grip on the waterway, while the United States would consider lifting retaliatory restrictions on Iranian ports as broader negotiations continue, including issues surrounding its nuclear programme.
U.S. Secretary of State Marco Rubio described the proposal as “better than expected,” but maintained that any agreement must decisively prevent Iran from advancing its nuclear ambitions.
Iran, however, pushed back strongly. Defence ministry spokesman Reza Talaei-Nik said Washington “must abandon its illegal and irrational demands,” insisting the U.S. could no longer dictate terms to sovereign nations.
Regional mediators have also raised concerns, with Qatar warning that the situation could devolve into a prolonged “frozen conflict” if no resolution is reached.
Crude prices have risen steadily for over a week, driven by the uncertainty. Brent crude hovered above $111 per barrel, while West Texas Intermediate climbed past $100 for the first time in two weeks.
Analysts said the prolonged standoff is beginning to strain supply systems.
“Iran wants the blockade lifted and access to its flows restored,” said Stephen Innes of SPI Asset Management.
“Washington holds that leverage and is in no hurry to give it up without concessions.”
He added that extended delays could trigger broader market pressures, including storage constraints and production risks.
Stock markets across Asia posted mixed results.
Gains were recorded in Hong Kong, Shanghai, Jakarta, and Manila, while Sydney, Singapore, Seoul, and Taipei closed lower.
Investors also tracked developments on Wall Street, where a tech-led selloff weighed on sentiment following reports that OpenAI missed user growth and revenue targets.
Attention is now turning to earnings reports from major US tech firms, including Amazon, Google, Meta, and Microsoft.
Market participants are also awaiting the outcome of the Federal Reserve policy meeting, with expectations that rising energy costs could influence its outlook on inflation and interest rates.
Despite ongoing diplomacy, uncertainty surrounding the Iran situation continues to cast a shadow over global markets, with investors closely watching for any breakthrough that could stabilise oil supply and ease geopolitical tensions.
