By Ronnie Harui and Sherry Qin
Oil prices retreated while Asian equity markets rose Wednesday on hopes for a resolution to the Middle East conflict.
The U.S. has sent Iran a 15-point plan to end the war, officials said, largely centered on previous Trump administration demands of Tehran. Iranian representatives have indicated to the Trump administration that they have a high bar for re-entering cease-fire negotiations.
A key sticking point is the unblocking of the Strait of Hormuz, a route for a significant share of the world's oil and gas. Restoring flows through the shipping lane would provide major relief for economies concerned about fuel shortages, though it remains unclear whether progress is being made.
Iran's mission to the United Nations, in a post on X, said that "non-hostile" vessels can pass through the Strait of Hormuz "in coordination with the competent Iranian authorities." The mission added that vessels could transit the strait if they "neither participate in nor support acts of aggression against Iran" and comply with safety and security regulations.
Front-month West Texas Intermediate crude oil futures fell 3.6% to $89.06 a barrel, while front-month Brent crude oil futures dropped 4.3% to $99.98 a barrel, ICE data showed.
There appears to be renewed optimism about de-escalation in the Middle East, said XS.com's Antonio Di Giacomo in an email.
"Even so, the lack of clarity about the negotiations' actual progress keeps investors cautious," the senior market analyst added.
Gold regained upside momentum as easing concerns over the Middle East conflict diminished expectations for higher interest rates. Spot gold rose 2.2% to $4,572.47 a troy ounce.
Pictet Wealth Management's senior investment manager Alejandro Bondavalli said the long-term case for gold remains intact. Policy uncertainty, fiscal sustainability worries as well as de-dollarization--key drivers of the safe-haven asset--are likely to persist.
Asian equity markets rose amid improving risk sentiment. Japan's Nikkei Stock Average was up 2.7%, South Korea's Kospi added 1.8% and Australia's S&P/ASX 200 rose 1.8%. Hong Kong's Hang Seng Index was flat by midday as investors digested a pack of mixed earnings this week.
Gold mining stocks in China and Hong Kong led gains. Zijin Gold International rose 2.4% and Zhongjin Gold climbed 4.2%.
U.S. stock futures also advanced, with eMini S&P 500 futures up 0.6%, eMini Nasdaq 100 futures up 0.7%, and eMini Dow futures gaining 0.7%.
Progress in cease-fire talks aimed at ending the war could help restore the global economic recovery scenario for financial markets, said Nomura's Naka Matsuzawa.
Write to Ronnie Harui at ronnie.harui@wsj.com and Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
March 25, 2026 00:52 ET (04:52 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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