Oil prices, US-Iran talks uncertainty lifted Brent crude more than 1% on Tuesday to USD 97.32 a barrel in early Asian trade.
US West Texas Intermediate crude was slightly above Monday’s last traded price but remained 5.5% below Friday’s close. US markets did not settle on Monday due to the Memorial Day holiday.
The move came as Iran’s top negotiator and foreign minister met in Doha with Qatar’s prime minister to discuss a possible deal with the United States. Washington and Tehran, however, played down expectations of an imminent breakthrough.
Nikkei reported that both sides were discussing a plan to reopen the Strait of Hormuz about 30 days after any deal to end hostilities. The waterway remains a key focus for energy traders.
US forces also carried out strikes on Monday in southern Iran. Washington described the attacks on boats attempting to lay mines and missile launch sites as defensive actions.
Commonwealth Bank of Australia strategist Joseph Capurso said markets still lacked clarity on the shape of any deal and on the timing of a reopening of the Strait of Hormuz.
Stocks were mixed. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%, while Japan’s Nikkei fell 0.2%. Nasdaq futures gained 0.9%, and S&P 500 futures rose 0.68%.
The dollar steadied on safe-haven demand. Spot gold fell 0.5% to USD 4,545.90 an ounce, while US Treasury yields were largely steady after last week’s bond selloff.
