HONG KONG: Oil prices fell, and Asian stocks climbed on Monday over hopes a deal between the United States and Iran to open the Strait of Hormuz could be brokered. The price of North Sea Brent crude and West Texas Intermediate slipped close to five percent to $99.41 and $92.49 a barrel, respectively. The United States and Iran appear closer than ever to a deal that would end the war that has ravaged the Middle East since late February, sending energy prices soaring and stoking global inflation. But sticking points in their negotiations have tempered hopes of a swift resolution to restore the transit of oil and gas through the Strait of Hormuz. US President Donald Trump said on Sunday he had informed US negotiators &quot;not to rush into a deal&quot;. &quot;The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side,&quot; a post to Trump&#39;s official Truth Social account said. Iran&#39;s Tasnim news agency said that, based on their information, key clauses of a possible agreement remained unresolved. One of the main sticking points has been whether Tehran is willing to hand over its stockpile of highly enriched uranium. The release of Iran&#39;s frozen assets held under longstanding US sanctions and whether Lebanon, repeatedly targeted by Israeli strikes, will be included in any peace deal are also key issues. Markets across Asia climbed in early trade on hopes that Washington and Tehran will be able to overcome these hurdles. Tokyo soared more than three percent in early trade on Monday, while Hong Kong and Seoul were closed for public holidays. Shanghai inched upwards, with Taipei, Manila, Bangkok, Jakarta, Singapore, Sydney, and Wellington also climbing. Kuala Lumpur was down 0.1 percent. &quot;The weekend news flow has once again focused on the prospects for a negotiated deal between the US and Iran,&quot; said Chris Weston, head of research at Pepperstone. &quot;According to reports from Donald Trump, a memorandum of understanding has been &#39;largely negotiated&#39;, with details to be announced at some stage soon, although there appears to be limited urgency,&quot; Weston said. Investors will also be keeping an eye on how the US Federal Reserve and its new chief, Kevin Warsh, react to Personal Consumption Expenditures (PCE) data this week, as well as European inflation metrics. &quot;The inflation story remains central to the entire setup,&quot; said SPI Asset Management analyst Stephen Innes. &quot;Investors will receive another critical read on Thursday with the release of the Personal Consumption Expenditures index, the Federal Reserve&#39;s preferred inflation gauge. &quot;After several hotter-than-expected consumer and producer inflation reports earlier this month, markets are increasingly concerned that elevated oil prices and supply disruptions tied to the Middle East conflict are beginning to seep into the broader inflation pipeline.&quot; The conflict erupted after the United States and Israel attacked Iran on February 28, and the Islamic republic responded with missile and drone attacks across the region. The United States and Iran have observed a ceasefire since April 8 while mediators push for a negotiated settlement, although Tehran has imposed controls on Gulf shipping and Washington has blockaded Iran&#39;s ports. Key figures at around 0215 GMT&nbsp;Brent North Sea Crude: DOWN 3.99 percent at $99.41 a barrel West Texas Intermediate: DOWN 4.25 percent at $92.49 a barrel Tokyo - Nikkei 225: UP 3.2 percent at 65,358.97 Shanghai - Composite: UP 0.3 percent at 4123.89 Hong Kong - Hang Seng Index: UP 0.9 percent at 25,606.03 (close) Euro/dollar: UP at 1.1640 from 1.1608 on Friday Pound/dollar: UP at $1.3480 from $1.3441 Dollar/yen: DOWN at 158.86 from 159.13 yen Euro/pound: DOWN at 86.35 from 86.36 pence New York - DOW: UP 0.6 percent at 50,579,70 (close) New York - S&amp;P 500: UP 0.4 percent at 7,473.47 (close) New York - Nasdaq: UP 0.2 percent at 26,343.97 (close) London - FTSE 100: UP 0.2 percent at 10,466.26 (close) Paris - CAC 40: UP 0.4 percent at 8,115.75 (close) Frankfurt - DAX 30: UP 1.2 percent at 24,888.56 (close)

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The United States and Iran appear closer than ever to a deal that would end the war that has ravaged the Middle East since late February, sending energy prices soaring and stoking global inflation.

Oil falls, Asian stocks climb on hopes of US-Iran Hormuz deal

HONG KONG: Most Asian shares were lower in morning trade on Monday, extending slides in global markets, as the impasse in the Middle East drove oil prices more than two percent higher. Washington and Tehran agreed to a truce in April, but negotiations on ending the conflict have stalled and sporadic attacks in the region have continued. US President Donald Trump issued a fresh warning to Iran on Sunday, saying it had to move quickly towards a peace deal or &quot;there won&#39;t be anything left of them&quot;. The war has led to an effective blockade of the Strait of Hormuz, through which around 20% of global oil exports pass in peacetime. The strait &quot;remains meaningfully closed now approaching eleven weeks after the Trump-Xi summit in Beijing concluded without a breakthrough on reopening the waterway&quot;, MUFG&#39;s Michael Wan said Monday. Tokyo shares lost 1.0% and Hong Kong was down 1.4%, while Shanghai was flat. Sydney, Bangkok, Taipei, Singapore and Wellington also fell, with Jakarta tumbling 2.7%. Seoul, which has renewed record highs in recent days thanks to the artificial intelligence stock boom, was trading up 1.2%. &quot;Global government yields rose sharply heading into the start of this week, as three forces collided: surging oil prices, fading hopes for a Strait of Hormuz resolution, and mounting fiscal concerns especially in the UK and US,&quot; Wan said. However, last week&#39;s talks on trade between China and the United States have offered &quot;a degree of relief for Asian markets&quot;, he added. &#39;Wave&#39; of AI demandData showed Monday that China&#39;s consumer spending in April grew at the slowest pace in more than three years a stark sign of the challenges Beijing faces to reignite domestic activity. In Tokyo, shares in memory chip maker Kioxia were not yet trading after a reported rush of buy orders following stellar quarterly results on Friday. Kioxia, the world&#39;s third-largest producer of NAND flash memory chips used as storage in AI data centers has seen its stock soar nearly 300% over the past year. The firm has forecast an eye-watering 1.3 trillion yen ($8.2 billion) in operating profit for April-June, saying it is &quot;riding the large wave of AI demand, which has led to record high revenue and profits&quot;. In South Korea, Samsung Electronics which has also profited massively from the AI memory chip boom resumed union talks in a bid to avoid a strike over bonus payments, due to start Thursday. Later Monday, traders will have their eye on a meeting of G7 finance ministers and central bank chiefs that kicks off in Paris, with bond selloffs in the spotlight, analysts said. Then all eyes will be on quarterly results from US chip titan Nvidia, set for Wednesday, which will be scrutinized as tech investors question whether huge spending on AI data centers is justified by potential returns. Key figures at around 0215 GMT&nbsp; West Texas Intermediate: UP 2.5% at $108.00 a barrel Brent North Sea Crude: UP 2.1% at $111.52 a barrel Tokyo - Nikkei 225: DOWN 1.0% at 60,797.08 Hong Kong - Hang Seng Index: DOWN 1.4% at 25,593.23 Shanghai - Composite: FLAT at 4133.75 Pound/dollar: DOWN at $1.3311 from $1.3316 on Friday Euro/pound: UP at 87.27 pence from 87.25 pence Euro/dollar: DOWN at $1.1617 from $1.1620 Dollar/yen: UP at 158.92 yen from 158.78 yen New York - DOW: DOWN 1.1% at 49,526.17 points (close) London - FTSE 100: DOWN 1.7% at 10,195.37 (close)

Pedestrians walk past an electronic quotation board displaying the Nikkei Stock Average on the Tokyo Stock Exchange along a street in Tokyo on May 18, 2026. (Photo by Kazuhiro NOGI / AFP) Related content

Asian markets fell as Middle East tensions pushed oil prices higher, with Strait of Hormuz disruption fears, weak China data, and upcoming US tech earnings weighing on sentiment.

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Oil falls, Asian stocks climb on hopes of US-Iran Hormuz deal

Asian stocks sink, oil rises on US-Iran deadlock

Oil falls, Asian stocks climb on hopes of US-Iran Hormuz deal