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Asian Stocks Rebound on Hopes Iran May Join U.S. Talks in Pakistan

Reports of possible talks eased market stress from the Strait of Hormuz disruptions.

Overview

  • Shares across Asia and India climbed Tuesday after Reuters reported Iran may send delegates to talks in Islamabad, with South Korea’s Kospi setting a record and Mumbai’s Sensex and Nifty closing up nearly 1%.
  • Oil prices slipped from Monday’s spike yet stayed high, with Brent near $95 a barrel as shipping through the Strait of Hormuz remained constrained following the U.S. seizure of an Iranian cargo ship.
  • Signals on diplomacy were mixed, as a senior Iranian official said Tehran may attend talks even as another Reuters source said Vice President JD Vance was still in the United States.
  • Pakistan’s KSE-100 fell about 1% Monday on doubts over Iran’s participation, highlighting how quickly sentiment has swung with each update on talks and the fragile ceasefire.
  • With the two-week truce close to expiring, investors expect more volatility and are also watching Federal Reserve nominee Kevin Warsh’s Senate hearing for clues on U.S. policy.