Oil prices rise and stocks mixed

Asian stocks were mixed and oil prices edged up 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 fuelled by the AI boom.

While there is an expectation that Washington and Tehran will finalise 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 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, which Muscat said was in conjunction with the International Maritime Organization.

Iran insists on controlling passage through the vital strait, something it did not enjoy before the war.

Both countries agreed to stop attacking each other, US media outlets reported late Sunday citing senior US officials, and plan to meet Tuesday in Qatar for more talks.

US President Donald Trump has repeated past threats of military action if the Iranian strikes continue, saying on Saturday that Iran would “no longer exist” if the US is “forced” to resume the war.

Iran’s top diplomat warned Sunday that any attempt by ships to bypass its preferred route would “increase tensions”.