Oil prices fell on Tuesday, while global stocks moved higher, as investors reacted to hopes of easing tensions between the United States and Iran.
A possible deal could reopen the Strait of Hormuz and stabilize supply, However, Iran has not confirmed if it will join new peace talks.
This uncertainty continues to influence market direction.
The White House said Vice President JD Vance is ready to return to Pakistan for fresh talks, these talks aim to end the ongoing conflict, at the same time, the two-week ceasefire is close to expiring.
As a result, traders remain cautious and alert to new updates, with tensions rising Between Both Sides
Iran accused the United States of breaking the truce, citing a blockade of its ports and the seizure of a vessel, In response, Donald Trump accused Tehran of harassing ships in the Strait of Hormuz, he said the blockade will remain until both sides reach a deal.
Oil prices have moved sharply in recent days, they dropped after Iran allowed ships to pass through the Strait of Hormuz.
However, prices rose again when Iran restricted access, the strait carries about one-fifth of global oil supply, because of this, any disruption quickly affects prices.
Despite tensions, investors expect a deal in the long term, therefore, stock markets posted gains across major regions.
Asian markets led the rally, supported by strong tech shares, markets in Europe also recorded modest gains.
However, Wall Street ended slightly lower after recent highs.
Market analysts believe both sides want to avoid further conflict, they say strong statements may be part of negotiation tactics.
Even so, the ceasefire deadline increases pressure on both sides, with Investors continuing to monitor each development closely.
Meanwhile, Japan plans to ease long-standing arms export rules, this move aims to strengthen its defence industry.
As a result, shares in firms like Fujitsu, NEC, and Mitsubishi Electric rose, markets remain sensitive to developments in the conflict, a peace deal could stabilise oil prices and boost investor confidence, However, failure to reach an agreement may trigger new volatility.
For now, traders are watching events closely.
