BY COMFORT OGBONNA
Oil prices edged lower on Tuesday while Asian equities mostly advanced, as uncertainty over U.S.–Iran talks weighed on energy markets and investors balanced geopolitical risks with strong corporate earnings momentum.
Brent crude slipped 1% to $94.44 per barrel, while U.S. benchmark West Texas Intermediate fell 1.2% to $86.19. The decline came after recent volatility driven by escalating tensions between Washington and Tehran, which have repeatedly raised concerns over potential disruptions to global oil supply routes, particularly through the Strait of Hormuz.
Market sentiment remains closely tied to diplomatic developments. U.S. President Donald Trump said Vice President JD Vance would travel to Islamabad for negotiations, but Iran has not committed to continuing talks following the U.S. Navy’s seizure of an Iranian-flagged cargo vessel. The uncertainty has left traders wary, especially with a ceasefire agreement between the two sides approaching its scheduled expiration.
Despite the geopolitical backdrop, Asian markets largely moved higher. Japan’s Nikkei 225 rose 0.9% to 59,357.74, supported by strong gains in technology stocks, including a 3.2% rise in Tokyo Electron and an 8.2% jump in SoftBank Group. South Korea’s Kospi surged 2.6% to 6,381.49, while Taiwan’s Taiex climbed 1.8%. Hong Kong’s Hang Seng index gained 0.4% to 26,465.04, though China’s Shanghai Composite slipped 0.1% to 4,077.27. Australia’s S&P/ASX 200 edged down 0.1% to 8,943.70.
Oil prices had already risen in the previous session amid heightened tensions, though the scale of movement remained more restrained than earlier spikes seen during the conflict period. U.S. equities, meanwhile, cooled slightly after recent record highs, with the S&P 500 down 0.2%, the Dow Jones Industrial Average essentially flat, and the Nasdaq Composite falling 0.3%.
Investors continue to monitor the risk of supply disruptions from the Persian Gulf, particularly if Iran intensifies pressure on shipping through the Strait of Hormuz, a critical chokepoint for global energy flows. Even so, prices remain well below earlier peaks near $119 per barrel for Brent crude, reflecting a partial easing of extreme risk sentiment.
The diplomatic clock is now a key focus, with a ceasefire deadline set for Tuesday evening in the United States, corresponding to early Wednesday in Tehran. Analysts describe the situation as a fragile truce, with markets watching closely to see whether negotiations can progress toward a more durable agreement.
Underlying market resilience has been supported by strong corporate earnings and steady U.S. economic indicators. Several major banks have pointed to continued strength in consumer spending, while earnings results for early 2026 have broadly exceeded expectations. Data from FactSet indicates that nearly 90% of reporting S&P 500 companies have posted profits above forecasts, with overall index earnings projected to rise about 13% year on year if current trends hold.
Investor attention is also turning to a busy week of corporate results, with UnitedHealth Group, Tesla, and Procter & Gamble among major firms scheduled to report earnings.
In currency markets, the U.S. dollar strengthened slightly to 158.88 yen, while the euro eased to $1.1776.