Oil Prices Rebound as Trump-Iran Claims Diverge, Global Stocks Extend Recovery

Global financial markets steadied on Tuesday as oil prices recovered from sharp losses, while major stock markets advanced on renewed investor optimism despite mixed signals over possible peace talks between the United States and Iran.

Crude prices climbed after falling about five percent in the previous session, as conflicting statements from US President Donald Trump and Iranian officials kept traders guessing over the prospects of reopening the Strait of Hormuz, a key shipping route through which roughly one-fifth of the world’s oil and liquefied natural gas supplies pass.

President Trump told reporters at the White House that negotiations with Iran were ongoing and suggested an agreement to reopen the strategic waterway could come “literally by tomorrow.” He also described the discussions as Iran’s “last chance” to reach a favourable deal before facing severe consequences. Tehran, however, denied holding direct negotiations with Washington, although Iranian officials confirmed discussions with Oman aimed at ensuring safe passage through the strait.

The rebound in oil prices came as investors also welcomed a record-breaking session on Wall Street. The Dow Jones Industrial Average closed at an all-time high, supported by another strong rally in Amazon shares, which pushed the technology giant’s market value above $3 trillion and eased concerns over heavy spending on artificial intelligence infrastructure.

Asian markets posted mixed but generally positive performances. South Korea’s Kospi Index gained more than one percent after memory chip manufacturers SK hynix and Samsung Electronics rebounded following weeks of sharp volatility linked to the AI-driven technology sector. Japan’s Nikkei 225 also closed higher, lifted by gains in semiconductor-related firms including Kioxia and Tokyo Electron.

Elsewhere, stock markets in Shanghai, Sydney, Singapore, Wellington and Jakarta ended in positive territory, while London, Paris and Frankfurt also opened higher. Hong Kong, Taipei, Mumbai and Manila, however, recorded modest losses.

Market analysts believe improving corporate earnings and continued investment in artificial intelligence are helping restore investor confidence despite recent market turbulence. Investors are now turning their attention to upcoming US employment data and corporate earnings reports, including results expected from SpaceX, for fresh clues on the outlook for the global economy and future interest rate decisions by the US Federal Reserve.