Oil prices remained elevated on Wednesday as markets looked for signals that a fragile ceasefire between the United States and Iran would hold, while investors closely monitored developments around a possible long-term deal.
Crude Oil Prices
Brent crude traded near $95.39 per barrel after Iran accused the US of violating the truce. US crude futures fell 0.89% to $93.05 a barrel, according to Reuters.
Asian Markets Rally
Asian shares rose with Japan's Nikkei hitting a record high and Wall Street optimism over artificial intelligence continuing to support market sentiment, even as investors remained cautious over the fragile US-Iran ceasefire and its impact on global energy markets.
Japan's Nikkei share gauge jumped to a record level, following all-time highs on Wall Street after US markets reopened following a holiday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2%, while the Nikkei surged 1.8%.
Market Sentiment Vulnerable
Sentiment, however, remained vulnerable as negotiations continued over a lasting halt to the three-month-long conflict that has rattled energy markets. "The markets are just waiting for something tangible now when it comes to a deal between the US and Iran," Kyle Rodda, senior financial market analyst, said in a note. "A lot of good news is priced in, leaving room for disappointment if something comprehensive isn't announced."
Ceasefire Violations Accusations
Iran’s foreign ministry said US strikes in the southern Hormozgan province amounted to a 'gross violation' of the ceasefire, while Washington maintained the attacks were defensive in nature.
US Secretary of State Marco Rubio said a potential agreement with Tehran to end the conflict could take 'a few days', while Iran's Tasnim news agency reported that Tehran was seeking the release of $24 billion in frozen overseas funds.
Currency and Commodity Markets
In currency markets, the dollar index was little changed at 99.09 after gaining 0.15% in the previous session. The euro rose 0.09% to $1.1638, while the Japanese yen strengthened 0.05% to 159.19 per dollar.
Spot gold rose 0.36% to $4,522.14 an ounce, while copper gained 0.46% to $13,686.50 a metric ton. In cryptocurrencies, bitcoin slipped 0.18% to $75,883.90, while ether was little changed at $2,075.39.
