Asian stocks mostly rose, and oil prices edged up on Monday as reports said the United States and Iran had agreed to stop attacking each other following a weekend of strikes that threw their fragile truce into question.
Investor confidence remains shaky after last week’s rollercoaster ride that saw markets whipsaw on the Middle East crisis and growing concerns about a tech bubble fueled by the AI boom.
While there is an expectation that Washington and Tehran will finalize a deal to end their conflict and reopen the Strait of Hormuz, the process has been fraught with tensions between the long time foes.
The two have traded strikes in recent days, disrupting shipping through the vital waterway and fanning concerns Iran will shut it down again.
The US Central Command said on Saturday it had attacked 10 Iranian military targets over “continued Iranian aggression against commercial shipping”.
Iran said it retaliated with strikes against US bases in Kuwait and Bahrain. Both Kuwait and Bahrain denounced the Iranian attacks.
Tehran has been angered by Oman’s announcement of an alternative route through the strait that hugged the Omani shoreline.