Oil Rises, Asian Stocks Mixed as Middle East Tensions Linger — Update

By Ronnie Harui and Sherry Qin

Oil prices advanced and Asian equities were mixed on Tuesday as tensions in the Middle East continued to fuel concerns over crude-supply disruptions.

President Trump on Monday dismissed Iran's counteroffer to the latest U.S. peace proposal, calling it "the weakest piece of garbage" and warning that the cease-fire with Iran was "on life support."

Separately, Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, said in a statement posted on X that the country's armed forces were ready to deliver a "well-deserved" response to any renewed U.S. military action.

"Tensions in the Middle East reached a new peak," said Commerzbank Research analysts, adding that Trump's response indicated he did not even finish reading Iran's offer. The cease-fire between has come to a "precarious moment," they said.

Front-month West Texas Intermediate crude oil futures rose 0.8% to $98.88 per barrel, with front-month Brent crude oil futures also rising 0.8% to $105.01 a barrel.

Saudi Aramco, Saudi Arabia's national oil company, warned Monday that if the reopening of the Strait of Hormuz is delayed by several more weeks, oil markets may not fully normalize until 2027.

Equity markets across Asia were mixed as investors weighed the growing fragility of the U.S.-Iran cease-fire.

South Korea's Kospi fell 1.5% on Tuesday after closing at a fresh record high in the previous session supported by the country's heavyweight chipmakers. Japan's Nikkei Stock Average rose 0.6%, while Hong Kong's Hang Seng Index added 0.3%. China's Shanghai Composite Index slipped 0.4%.

Spot gold edged 0.2% down to $4,724.16 a troy ounce as markets weighed geopolitical anxiety against rising inflation concerns. Physical demand may also come under pressure after India's Prime Minister Narendra Modi called on citizens to avoid buying gold for a year to help defend the country's foreign-exchange reserves as geopolitical headwinds continue to weigh on the rupee.

Meanwhile, investors are looking ahead to a meeting between President Trump and Chinese leader Xi Jinping, with key topics expected to include the Iran conflict, trade, semiconductors and AI supply chains.

"The key market question is whether the U.S. and China can reduce the Iran-related oil shock without reopening a broader trade or technology shock," said Saxo Markets chief strategist Charu Chanana.

Write to Ronnie Harui at ronnie.harui@wsj.com and Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 12, 2026 00:39 ET (04:39 GMT)