HONG KONG: Oil prices fell Monday on optimism over US-Iran peace talks, with mediators flagging a "roadmap" to a final agreement, while most equities rose thanks to another healthy start for tech firms.

After a meeting planned for Friday was cancelled owing to fighting between Israel and Hezbollah, the negotiations finally got underway on Sunday in Switzerland with teams led by US Vice President JD Vance and Iran's Mohammad Bagher Ghalibaf.

Traders remain in a buoyant mood after news that the two foes had ended their conflict, which had sent energy costs soaring and stoking inflation, sending shivers through the global economy.

There were initial jitters following reports that Iran had called off the talks over US President Donald Trump's threat to carry out more strikes if Hezbollah kept attacking Israel. Still, mediators Pakistan and Qatar said the talks took place in "a positive and constructive atmosphere".

The mood improved as Qatar and Pakistan announced progress aimed at addressing Tehran's nuclear program and reopening the Strait of Hormuz, through which a fifth of oil and gas pass.

The two said the United States and Iran agreed to set up a "communication line" to avoid incidents in the crucial waterway, and "the High Level Committee has agreed upon a roadmap towards reaching a final deal within 60 days, laying the foundation for the immediate commencement of further technical talks".

Iranian Foreign Minister Abbas Araghchi added on X that "mediation has delivered major progress to end Lebanon War".

Both main oil contracts fell in early trade, while most stock markets advanced.

Tokyo climbed 2%, Seoul was up more than 1%, and Taipei jumped 2.7%.

The gains came on the back of another rally in tech firms, particularly chipmakers including South Korea's SK hynix, Taiwan's TSMC and Japan's Advantest.

Sydney, Wellington and Jakarta also advanced, though there were losses in Hong Kong, Shanghai and Singapore.

"Following the positive response last week to reports of a US-Iran ceasefire, markets are likely to open with a cautious tone to start the new week as it remains clear that the situation in the Middle East remains fragile," said National Australia Bank's Skye Masters.

"The dollar is likely to remain supported, the oil price could swing either way, but at current levels the risk is for a lift higher."

Sterling remained under pressure after suffering selling following Thursday's election of UK Labour politician Andy Burnham that ramped up expectations he will oust beleaguered Prime Minister Keir Starmer.

The embattled premier "is expected to announce on Monday that he will step down as prime minister after overwhelming pressure from Labour MPs to make way for Andy Burnham", Britain's Guardian newspaper said.

Investors were nervous that Burnham could introduce fresh spending plans that would add to the country's already huge debt pile.

Key figures around 0230 GMT

West Texas Intermediate: DOWN 0.5% at $75.47 a barrel

Brent North Sea Crude: DOWN 1.5% at $79.38 a barrel

Tokyo - Nikkei 225: UP 2.0% at 72,648.47 (break)

Hong Kong - Hang Seng Index: DOWN 1.4% at 23,597.25

Shanghai - Composite: DOWN 0.1% at 4,088.17

Seoul - Kospi: UP 1.3% at 9,171.14

Euro/dollar: DOWN at $1.1462 from $1.1464 on Friday

Pound/dollar: UP at $1.3220 from $1.3218

Dollar/yen: UP at 161.54 yen from 161.27 yen

Euro/pound: DOWN at 86.71 pence from 86.73 pence

Articles tagged with "crude oil price"

Crude prices drop, most stocks rise on 'positive' US-Iran talks