Oil Prices Drop Amid Fresh Middle East Hopes

Asian stocks rose on Wednesday as oil prices continued to drop due to receding concerns about another military conflict between the US and Iran. The Strait of Hormuz, a key shipping route, may be partially reopened after Tehran and Oman edged closer to a deal. Both main crude contracts have fallen by more than eight percent this week.

US Treasury Secretary Scott Bessent declared an 'economic D-Day' against Iran and its trade partners, but the measures were seen as softer than expected. Jason Wong at BNZ noted that market sentiment may be shifting in favor of fresh diplomacy to resolve the Middle East crisis.

Pakistani mediators reported positive talks with Iran's president on Monday, saying 'a very positive and productive meeting' will help pave the way for lasting peace in the region.