Asian stocks fluctuated on Wednesday while oil prices swung amid growing uncertainty over stalled talks to end tensions between the United States and Iran, with the critical Strait of Hormuz still closed to full traffic.
Investor sentiment remained fragile as the White House indicated that Donald Trump and his team were reviewing Tehran’s latest proposal to reopen the waterway. However, reports from CNN and The Wall Street Journal suggested the president remained sceptical.
Iran has reportedly предложed easing restrictions on the vital shipping route in exchange for the US lifting its retaliatory blockade on Iranian ports, as broader negotiations including over its nuclear programme continue.
US Secretary of State Marco Rubio described the proposal as “better than expected” but stressed that any agreement must ensure Iran cannot accelerate toward developing a nuclear weapon.
Meanwhile, Iranian defence ministry spokesman Reza Talaei-Nik pushed back, urging Washington to drop what he called “illegal and irrational demands,” and insisting the US could no longer dictate policy to sovereign nations.
Regional concerns deepened after Qatar warned that the situation could devolve into a prolonged “frozen conflict” without a clear resolution.
The diplomatic impasse has kept oil markets volatile. Crude prices have climbed for over a week, with Brent crude hovering around $112 per barrel — above levels seen before an early-April ceasefire — while West Texas Intermediate crossed $100 on Tuesday for the first time in two weeks. Both benchmarks edged slightly higher on Wednesday.
Analysts say the prolonged uncertainty is beginning to strain global supply dynamics. Stephen Innes of SPI Asset Management noted that while Iran seeks relief from restrictions on its oil flows, Washington is unlikely to concede without significant gains.
“The longer this drags on, the more pressure builds across the system,” he said, pointing to storage constraints and rising production risks that are increasingly influencing market pricing.
Adding to the complex outlook, the United Arab Emirates recently announced its withdrawal from the OPEC and OPEC+ alliances, describing the move as strategic. However, the development has so far had limited immediate impact on prices.
Despite the tense backdrop, reports suggest negotiations are still progressing behind the scenes. Sources cited by CNN indicated that both sides may be closer to an agreement than public statements imply, with discussions focusing on a phased deal that could initially restore pre-conflict conditions and reopen the Strait of Hormuz.
For now, markets remain sensitive to every diplomatic signal, with energy traders closely watching for any breakthrough that could stabilise supply routes and ease price volatility.
