Oil dips, Stocks rise on Iran peace hopes

Oil prices declined on Tuesday while global stock markets mostly moved higher, as investors held onto hopes of a potential deal between the United States and Iran to ease tensions and reopen the Strait of Hormuz.

Despite the optimism, uncertainty remains over Iran’s participation in upcoming peace talks. JD Vance is expected to travel to Pakistan for fresh negotiations ahead of the expiry of a two-week ceasefire.

Tensions between the two sides persist, with Iran accusing Washington of violating the truce through its blockade of Iranian ports and seizure of a vessel. Meanwhile, Donald Trump warned that the blockade would remain in place until a deal is reached and indicated that extending the ceasefire was unlikely.

Oil markets have been volatile in recent days. Prices had dropped sharply after Iran briefly allowed ships to pass through the strait, but rebounded when the waterway was closed again. On Tuesday, West Texas Intermediate crude oil fell 1.2 percent to $88.50 per barrel, while Brent crude oil slipped 0.4 percent to $95.12.

Stock markets, however, showed resilience. Asian markets led gains, with strong performances in Tokyo, Seoul and Hong Kong, supported by a renewed rally in technology shares.

Analysts say markets are cautiously optimistic, pricing in the possibility of progress in negotiations, though they remain sensitive to sudden developments as the ceasefire deadline approaches.