(AFP)
Oil prices fell and Asian stocks climbed on Monday over hopes a deal between the United States and Iran to open the Strait of Hormuz could be brokered.
The price of North Sea Brent crude and West Texas Intermediate slipped close to five percent to $99.41 and $92.49 a barrel respectively.
The United States and Iran appear closer than ever to a deal that would end the war that has ravaged the region since late February, sending energy prices soaring and stoking global inflation.
But sticking points in their negotiations have tempered hopes of a swift resolution to restore the transit of oil and gas through the Strait of Hormuz.
US President Donald Trump said on Sunday he had informed US negotiators "not to rush into a deal".
"The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side," a post to Trump's official Truth Social account said.
One of the main sticking points has been whether Tehran is willing to hand over its stockpile of highly enriched uranium.
The release of Iran's frozen assets held under longstanding US sanctions and whether Lebanon will be included in any peace deal are also key issues.
Markets across Asia climbed in early trade on hopes Washington and Tehran will be able to overcome these hurdles.
Tokyo soared more than three percent in early trade on Monday, while Seoul was closed for public holidays.
Shanghai inched upwards, with Manila, Bangkok, Jakarta, Singapore, Sydney and Wellington also climbing.
Kuala Lumpur was down 0.1 percent.
Investors will also be keeping an eye on how the US Federal Reserve and its new chief Chair Kevin Warsh react to Personal Consumption Expenditures (PCE) data this week, as well as European inflation metrics.