Oil prices held losses on Tuesday after falling nearly 5% a day earlier. Investors assessed a US-Iran peace deal aimed at reopening the Strait of Hormuz.
Brent crude settled Monday at $83.17 a barrel, down $4.16, or 4.76%. Meanwhile, West Texas Intermediate closed at $80.75, down $4.13, or 4.87%, Reuters reported.
Equities mostly rose after Monday’s relief rally, according to the source brief. In particular, the Dow hit a record high Monday. Crude prices fell after President Donald Trump said ships were moving through the strait again.
Trump said the waterway would be “completely open” by Friday, the source brief said. Iranian media reported that three oil tankers and two cargo ships had passed through the area after restrictions were eased.
Read: Asian Stocks Jump Over 5% as Oil Prices Fall
A senior US administration official said Trump, Vice President JD Vance and Iran’s parliamentary speaker Mohammad Bagher Ghalibaf had signed the text electronically, according to the source brief. The formal signing is expected in Switzerland on Friday.
Fiona Cincotta, an analyst at City Index, said investors were pricing in a better geopolitical backdrop. She warned that unfinished details could still trigger a sharp market reaction.
Shipping groups said Monday it was too early to resume normal, safe sailing. The Guardian reported that oil and gas markets may take months to return to prewar conditions even if Hormuz reopens.
Seoul led Asian gains Tuesday with a rise of more than 1%. Shanghai, Singapore, Taipei, Wellington and Manila also advanced. In contrast, Tokyo, Hong Kong and Sydney fell, according to the source brief.
