Oil prices rise, most Asian stocks fall as US-Iran deal remains elusive
Oil prices increased and most Asian stocks declined on Tuesday as prospects for a US-Iran agreement to reopen the Strait of Hormuz remained distant, following the expiration of a truce deadline. Despite recent soft US economic data easing concerns about an immediate Federal Reserve interest rate hike, traders anticipate continued high inflation due to the ongoing Middle East crisis, keeping crude oil around $90 a barrel. This situation has pushed long-term Treasury yields to levels not seen since June 2007. The likelihood of a deal between Washington and Tehran is considered low after Donald Trump stated he would not extend a 60-day truce and Iran deemed it irrelevant, citing US violations. Jared Kushner, the US president’s envoy, acknowledged ongoing "very positive and active conversations" but noted a lack of trust between the two nations. Trump indicated he would be patient for the "right deal" and previously threatened to bomb Oman if it interfered with an agreement, referencing talks between Muscat and Tehran regarding the Strait of Hormuz. Treasury Secretary Scott Bessent recently threatened Tehran with unprecedented economic isolation, with new measures expected soon. Both main crude contracts saw gains on Tuesday, with Brent North Sea Crude above $91. Equities largely fell, with Tokyo, Seoul, Taipei, Sydney, Singapore, and Mumbai experiencing declines, while Hong Kong, Shanghai, Manila, Wellington, and Jakarta rose. London edged higher, but Paris and Frankfurt retreat
