Markets Rally Amid Middle East Diplomacy and Sliding Oil Prices

Markets rose globally as oil prices continued to decline due to receding concerns over a potential military conflict between the US and Iran. Diplomatic efforts to resolve the Middle East crisis have led to optimism, with Tehran and Muscat making progress in partially reopening the Strait of Hormuz.

The US Treasury Secretary described the White House's move as an 'economic D-Day' against Iran and its trade partners, but analysts believe it may be softer than initially thought. The measures are seen as a possible attempt to bring Iran back to the negotiating table.

Crude oil prices fell around 2% on Wednesday, with Brent dipping below $90 a barrel. This easing of pressure has lifted equities globally, with major markets such as Tokyo, Hong Kong, and Shanghai rising.