Oil Falls, Asian Equities Mixed as Markets Parse Mideast Developments — Update

By Amanda Lee

Oil prices continued to decline and Asian equities were mixed as traders and investors parsed comments from President Trump on the prospect of a deal with Iran to resolve a monthslong conflict that has disrupted the global energy market and stoked inflation.

Trump said he had a "big decision to make": whether to strike a deal with Tehran that "lets them rebuild" or to "annihilate the Islamic Republic, and do it quickly." The president later told reporters that leaders from both countries met for three hours in what he described as "a very good meeting."

"I believe we'll make a deal right after the election, because it doesn't make sense for [the Iranians] not to," he said in a speech at the United Nations General Assembly, adding that an agreement would send oil prices below prewar levels.

In a post on X, U.S. envoy Steve Witkoff said that the U.S. and Iranian delegations engaged in "lengthy talks" through mediators who shuttled between the two sides throughout the day. They successfully completed a round of discussions that could be constructive and promising, he added.

Analysts said markets will be closely watching the U.S.-Iran diplomatic discussions for signs of a potential reopening of the Strait of Hormuz, which remains effectively closed nearly seven months into the war.

Front-month West Texas Intermediate crude oil futures fell 1.2% to $89.43 a barrel, while front-month Brent crude oil futures dropped 0.65% to $98.60 a barrel.

Stock markets across Asia were mixed Wednesday, with Hong Kong's Hang Seng Index declining 0.9% and the Shanghai Composite Index falling 0.3%. South Korea's Kospi was up 0.4% and Taiwan's Taiex rose 0.75% to a record close. Japanese markets were closed for holidays.

Regional currencies mostly weakened against the greenback. The dollar was 0.2% higher at 157.67 yen and 0.1% higher at 1355.10 won, while the Australian dollar traded 0.2% lower at US$0.7096, according to LSEG data.

In other foreign-policy developments, the meeting between Trump and Chinese leader Xi Jinping is set to be a key focus for the market. Investors are expecting modest progress but no major breakthroughs, UOB Global Economics & Markets Research said in a note.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

September 23, 2026 02:23 ET (06:23 GMT)