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U.S.-Iran Talks Weigh on Oil and Boost Asian Markets

Signs the two sides may reach a memorandum of understanding have eased shipping and supply fears, prompting central banks to watch inflation and currency risks closely.

Overview

  • On Monday oil prices fell about 4%, with Brent near $99.41 a barrel and WTI around $92.49, while major Asian equity indexes and the Indian rupee rose as investors priced lower supply risk.
  • Officials and mediators say talks are closer to a memorandum of understanding but core issues remain unresolved, including Iran's stock of highly enriched uranium, frozen assets, and regional demands.
  • President Donald Trump told the U.S. negotiating team not to rush a deal and described the discussions as organised and constructive, signaling U.S. caution even as markets rallied.
  • The Reserve Bank of India has intervened in currency markets and is studying options such as rate increases, larger forex swap facilities, and measures to attract dollar inflows to steady the rupee.
  • The conflict began with strikes on February 28 and a ceasefire has held since April 8, yet Iran's shipping limits and U.S. port measures keep supply risk live, so investors are watching U.S. PCE and European inflation data for policy implications.