Asian Stocks Rise as Oil Prices Decline Amid Fresh Iran Diplomacy

Asian stocks rose on August 26 as oil prices declined further due to receding concerns about another military flare-up between the United States and Iran.

The Strait of Hormuz, a key shipping route, may be partially reopened soon after Tehran and Oman made progress towards a deal. The US Treasury Secretary declared an 'economic D-Day' against Iran and its trade partners, but analysts viewed this as softer than expected.

Pakistani mediators reported positive talks with Iran's president on August 24, saying the momentum could pave the way for lasting peace in the region.

Crude prices fell around 2% on August 26, dropping below $90 a barrel. This easing of pressure boosted equities after last week's spike fueled inflation fears and sent long-dated US Treasury yields to their highest since 2007.