Oil prices hit two-week lows on Monday (May 25) on optimism that the United States and Iran were moving closer towards a peace deal, even though they remained at odds over key issues, including blockades on the Strait of Hormuz that continued to restrict oil supply from the Middle East.
The price of North Sea Brent crude and West Texas Intermediate slipped close to 5 per cent to US$99.41 and US$92.49 a barrel, respectively.
Tokyo soared more than 3 per cent in early trade on Monday, while Hong Kong and Seoul were closed for public holidays.
Shanghai inched upwards, with Taipei, Manila, Bangkok, Jakarta, Singapore, Sydney and Wellington also climbing. Kuala Lumpur was down 0.1 per cent.
But sticking points in their negotiations have tempered hopes of a swift resolution to restore the transit of oil and gas through the Strait of Hormuz.
US President Donald Trump said on Sunday he had informed US negotiators “not to rush into a deal”.
One of the main sticking points has been whether Tehran is willing to hand over its stockpile of highly enriched uranium.
The release of Iran’s frozen assets held under longstanding US sanctions and whether Lebanon, repeatedly targeted by Israeli strikes, will be included in any peace deal are also key issues.
However, analysts expect that it will take months for oil flows through the strait to return to normal and for damaged oil and gas facilities to be repaired. (CNA)