Signs of a phased easing in the Iranian situation emerged on Tuesday, with Asia-Pacific stocks generally rising and oil prices under pressure.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e7e81c96-362b-4bb5-8f7b-00969473f179.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e7e81c96-362b-4bb5-8f7b-00969473f179.png"/>
Although the US blockade of the Strait of Hormuz has officially taken effect, diplomatic signals from the Trump administration have warmed investor sentiment, as markets seek a balance between geopolitical risks and peace expectations.
Wallstreetcn mentioned that US Vice President Vance stated on Monday that significant progress has been made in negotiations with Iran. He noted that the next steps in the US-Iran peace process depend on Iran, adding that the US side has already put many chips on the negotiating table, and now the ball is in Iran's court.
Earlier, Trump also expressed willingness to restart dialogue, stating that the Iranian side had proactively contacted his administration. These comments significantly improved market sentiment, with major indices in the Asia-Pacific region following the overnight rally in US stocks.
The MSCI Asia Pacific Index rose 1.1%, while Australia's S&amp;P/ASX 200 gained 0.5%. Japan's Nikkei 225 climbed 2.5%, and South Korean stocks strengthened by more than 3% in sync, led by technology shares.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6773340c-a98b-4e46-9eaa-668d7c64a198.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6773340c-a98b-4e46-9eaa-668d7c64a198.png"/>
Despite the short-term rebound, institutional analysts generally caution that geopolitical risks remain highly uncertain. Kyle Rodda, an analyst at Capital.com, stated:
<blockquote>
The market is eager to give peace a chance, amplifying positive signals while downplaying negative factors, but the risk of further volatility remains high, with headlines still being the core variable driving the market.
</blockquote>
Ulrike Hoffmann-Burchardi, Chief Investment Officer for Americas at UBS Global Wealth Management, advised investors to exercise restraint, stating:
<blockquote>
Given the economic costs associated with high oil prices and the extreme uncertainty regarding the trajectory of the situation, investors should avoid attempting to 'trade' geopolitics.
</blockquote>
Oil prices declined amid a tug-of-war between geopolitical risk premiums and diplomatic optimism.
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West Texas Intermediate May contracts fell more than 2% to $96.91 per barrel, while Brent crude June contracts dropped 1.88% to $97.49 per barrel.
The decline in oil prices provided some relief to inflation expectations, pushing US Treasury yields lower.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/3d870cf0-52ae-4452-9f4b-538e3937e97e.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/3d870cf0-52ae-4452-9f4b-538e3937e97e.png"/>
The Bloomberg Dollar Spot Index weakened slightly. Gold rebounded after two consecutive days of declines, with spot gold prices rising 0.5% to $4,765 per ounce.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/133ab4d0-679f-4dcb-9d61-87acb442b1e7.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/133ab4d0-679f-4dcb-9d61-87acb442b1e7.png"/>
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The first round of marathon talks in Islamabad, lasting 21 hours, ended without results on the 12th, with the nuclear issue and the dispute over control of the Strait of Hormuz remaining unresolved. However, the two sides have not completely broken ties. According to reports from foreign media outlets such as The Atlantic, a second round of direct negotiations may be held in Islamabad on the 16th. Will this round yield results? What are your thoughts?

The first round of marathon talks in Islamabad, lasting 21 hours, ended without results on the 12th, with the nuclear issue and the dispute over control of the Strait of Hormuz remaining unresolved. However, the two sides have not completely broken ties. According to reports from foreign media outlets such as The Atlantic, a second round of direct negotiations may be held in Islamabad on the 16th. Will this round yield results? What are your thoughts?

A surprising turn of events? The US and Iran plan a second round of talks on the 16th.

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Iranian tensions ease, prompting broad gains across Asia-Pacific markets with South Korea rising over 3%. US Vice President reports progress in negotiations with Iran, improving market sentiment. Despite the short-term rebound, analysts warn that geopolitical risks remain high. Oil prices fell as geopolitical risks and diplomatic optimism fluctuated, with West Texas Intermediate dropping more than 2%. Investors should proceed cautiously and avoid attempting to trade geopolitics

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Iran Negotiations Show Signs of Progress, Asia-Pacific Stocks Surge Collectively, South Korea Up Over 3%, Oil Prices Drop