Asian stocks climbed Tuesday following President Donald Trump's decision to delay strikes on Iranian energy sites, boosting hopes for a de-escalation of tensions in the Middle East. However, oil prices rebounded as skepticism grew about the prospects of a breakthrough in talks. The announcement led to a 14% dip in Brent crude, but prices later recovered by over 3%. Major Asian markets saw gains, though these moderated as the day progressed. The dollar strengthened against major currencies.
Analysts warn that even if talks progress, the disruption to shipping lanes and infrastructure damage will keep energy prices elevated. Saudi Arabia and the UAE are reportedly considering joining the conflict, while the EU and Australia agreed to a free trade deal and enhanced defense cooperation.