Asian stock markets traded higher on Monday as investors remained hopeful of Pakistan-brokered peace talks between Iran and the US. The MSCI Asia Pacific index was up 0.3%.
South Korea's benchmark Kospi gained as much as 1.2%. Japan's blue-chip Nikkei 225 rose nearly 1% and the broader Topix gained 0.9%. Australia's S&P/ASX 200 fell 0.5%.
Hong Kong Hang Seng index futures were at 26,121, marginally lower than the index's last close of 26,160.
The dollar strengthened against a basket of major currencies amid haven demand. The Japanese yen fell 0.3% to 159.18 per dollar.
US equity futures were down, with contracts on both the S&P 500 and Nasdaq 100 slipping 0.7%.
During Friday's regular session, the S&P 500 jumped 1.2% to close at 7,126.06, crossing the 7,100 threshold for the first time. The Nasdaq Composite gained 1.52% and settled at 24,468.48 for its 13th consecutive winning day and its longest positive streak since 1992. Both indexes posted fresh intraday and closing records.
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US President Donald Trump said on Sunday that the US Navy seized the Iranian-flagged cargo ship Touska in the Strait of Hormuz, prompting warnings of retaliation from Iran. The seizure is an escalation of the blockade and comes after Iran fired upon commercial vessels attempting to transit the Strait of Hormuz earlier Sunday.
Trump warned he would "knock out every single Power Plant and every single Bridge in Iran" if Tehran did not agree to Washington's terms to end the conflict.
US Vice President JD Vance will reportedly travel to Pakistan to lead the next round of negotiations this week. Iran will not participate in a second round of peace talks with the United States in Islamabad, state-affiliated media said on Monday.
Oil Prices
Global energy markets opened sharply higher after a weekend escalation between the US and Iran rattled supply expectations. Benchmark crude prices surged, with Brent rising to around $96 per barrel and West Texas Intermediate climbing above $90 per barrel, marking gains of over 6% each. Natural gas markets mirrored the move, with European prices jumping as much as 11% amid fears of prolonged disruption in energy flows.
ALSO READ: Brent Crude Jumps Over 6% As US Seizure of Iranian Ship Sparks Strait Tensions Again
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