SynopsisAsian stocks are set to track Wall Street higher as optimism grows. Prospects for an interim deal with Iran eased energy supply concerns significantly. This development has led to a slide in oil prices and reduced inflation pressures. Investors are now watching for further progress on reopening the Strait of Hormuz. This situation may strengthen the case for the Federal Reserve to keep interest rates unchanged.AgenciesTreasury yields have tracked oil prices to varying degrees since the US attacked Iran in late February, helping push up inflation and bolstering the case for tighter US monetary policy.Asian stocks were set to track Wall Street higher as optimism over a possible interim deal between Washington and Tehran eased concerns about energy supplies and lifted US stocks to fresh records.Equity-index futures for Australia, Japan and South Korea all pointed to gains after the S&P 500 climbed to an all-time high Tuesday. While the Nasdaq 100 surged 3.3%, contracts for the benchmark edged lower in early Asian trading after SpaceX reported higher-than-expected spending on its artificial intelligence business, while Advanced Micro Devices Inc.’s outlook failed to excite investors.US crude extended losses in early trading as prospects for an interim agreement centered on reopening the Strait of Hormuz appeared to gain momentum, after global benchmark Brent slid below $80 on Tuesday. Qatar said a proposal had been drafted, while US and Iranian officials expressed optimism that a deal could be reached.Investors will be watching whether progress toward reopening the key shipping route extends the recent slide in oil prices, easing inflation pressures and reinforcing the rally in global equities. Lower energy costs may also strengthen the case for the Federal Reserve to keep interest rates on hold.Read more: Closing auction keeps traders on edge as divergence persists “Markets are reacting to the possibility that a reopening of the Strait of Hormuz could help normalize global oil supplies and reduce near-term energy price pressures,” said Tony Miano at Wells Fargo Investment Institute. “Lower oil prices can ease inflation concerns.”The latest US earnings also remained supportive of sentiment, with Caterpillar Inc. jumping after strong growth driven by data-center spending. McDonald’s Corp. advanced after Chief Executive Officer Chris Kempczinski hailed an “opportunity to raise the bar in the US and accelerate performance in our largest market,” even as growth slowed for a second straight quarter.Meanwhile, Treasuries rose on Tuesday as signs of progress toward a diplomatic resolution of the Iran war sent oil prices lower, curbing expectations for more than one Fed interest-rate hike in the coming year.Yields fell across maturities by four to six basis points, with the yield on the two-year note reaching the lowest level since July 20 and the benchmark 10-year yield at 4.61%. A Bloomberg gauge of the dollar edged lower.Treasury yields have tracked oil prices to varying degrees since the US attacked Iran in late February, helping push up inflation and bolstering the case for tighter US monetary policy.On the economic front, US job openings eased in June but hiring picked up slightly, indicating relatively steady demand for workers heading into the summer.That stability gives the Fed room to stay focused on inflation, although Friday’s jobs report could quickly change the conversation, according to Bret Kenwell at eToro.“A red-hot print could strengthen the case for a September rate hike, particularly with inflation still elevated,” he said. “However, a disappointing report combined with last week’s weaker-than-expected gross domestic product growth could give the Fed more cover to remain on hold.”Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless