Asian equity markets were mixed on Wednesday, while global oil prices remained volatile amid a continued stalemate in efforts to resolve the Iran-related conflict and uncertainty over the reopening of the Strait of Hormuz.
Sentiment remained fragile as diplomatic engagement between Washington and Tehran showed limited progress. The White House said President Donald Trump and his team were reviewing Iran’s latest proposal aimed at restoring maritime traffic through the strategic waterway, while U.S. media outlets reported skepticism within the administration regarding the offer.
Iran has reportedly proposed easing restrictions on the Strait of Hormuz in exchange for the lifting of U.S. sanctions on its ports, as negotiations continue to include discussions over Tehran’s nuclear programme. U.S. Secretary of State Marco Rubio described the proposal as an improvement but stressed that any agreement must “definitively prevent” Iran from advancing toward nuclear weapons capability.
Iranian officials rejected U.S. conditions, with Defence Ministry spokesperson Reza Talaei-Nik stating that Washington must abandon “illegal and irrational demands” and accusing it of attempting to dictate policy to sovereign states. Qatar warned that failure to reach a resolution could result in a prolonged “frozen conflict.”
Oil markets remained elevated, with Brent crude trading above pre-ceasefire levels at around $112 per barrel and West Texas Intermediate holding above $100. Prices have remained supported by persistent geopolitical risk and concerns over supply disruptions, including uncertainty following the cancellation of U.S. envoy-led peace talks in Pakistan last weekend.
Analysts noted that prolonged negotiations are increasing strain on global supply expectations, with storage pressures and production risks contributing to upward price momentum.
Equity markets across the Asia-Pacific region moved in different directions, with gains in Hong Kong, Shanghai, Jakarta, and Manila offset by declines in Sydney, Singapore, Seoul, and Taipei. Weak cues from Wall Street also weighed on sentiment after technology shares fell amid disappointing signals from major tech firms.
Investors are also focused on upcoming earnings from major U.S. technology companies, including Amazon, Google, Meta, and Microsoft, as well as the U.S. Federal Reserve’s policy decision, with inflation and energy price pressures remaining key concerns.