Oil rises, stocks mixed as US-Iran peace hopes weaken

Oil prices climbed on Monday while global stock markets showed mixed performance after hopes for peace talks between the United States and Iran weakened following President Donald Trump’s cancellation of a planned diplomatic trip over the weekend.

Expectations for progress in negotiations in Pakistan faded after Trump said there was no reason to continue discussions that were producing little movement. He later said Iran quickly submitted a revised proposal after the trip was canceled, though he gave no details.

Despite the setback, Trump said the cancellation did not necessarily signal a return to military conflict.

Reports indicated Iran had presented a new offer that could reopen the Strait of Hormuz, one of the world’s most important shipping routes for oil and gas, while postponing nuclear negotiations until a later stage.

Talks between the two sides remain stalled. Iran has criticized the US blockade of its ports, while Washington is demanding that Tehran allow shipping traffic through the strategic waterway.

Iranian state media also reported that Foreign Minister Abbas Araghchi arrived in Saint Petersburg for talks with Russian President Vladimir Putin, following recent visits to Pakistan and Oman as part of broader diplomatic efforts.

Oil prices rose more than one percent amid concerns that any further escalation could tighten global supply.

West Texas Intermediate increased 1.1 percent to $95.44 per barrel, while Brent crude gained 1.3 percent to $106.66 per barrel.

Analysts said prices could move even higher if tensions worsen, especially if conflict disrupts shipping further in the Strait of Hormuz.

Stock markets in Asia were mixed. Tokyo, Seoul and Taipei advanced strongly, helped by gains in technology shares, while Shanghai and Jakarta also moved higher. Sydney, Singapore and Manila declined, while Hong Kong was little changed.

Wall Street had ended Friday with fresh record highs for the S&P 500 and Nasdaq, supported by optimism around technology earnings.

Investors are now watching upcoming earnings reports from major US technology companies including Alphabet, Meta, Microsoft, Amazon and Apple, as well as this week’s Federal Reserve policy meeting, where interest rates are widely expected to remain unchanged.