Asian stocks edged higher Wednesday as oil prices extended a decline on receding concerns about another military flare-up between the United States and Iran, while traders were also nervously awaiting Nvidia's earnings and key US inflation data.Both main crude contracts have tumbled more than eight percent this week as Tehran and Oman edge towards a deal to partially reopen the Strait of Hormuz, while signs of fresh diplomacy to end the Middle East crisis added to the upbeat mood.
While US Treasury Secretary Scott Bessent said the White House was declaring an "economic D-Day" against Iran and its trade partners, the measures were regarded as softer than many had feared.
Jason Wong at BNZ wrote: "The move could reflect market sentiment that the latest US strategy, 'Operation Economic Outcast', aimed at severing Iran's remaining financial lifelines, could bring Iran back to the negotiating table and help resolve the conflict."
The comments came as key Pakistani mediators reported positive talks with Iran's president on Monday.
Pakistan Interior Minister Mohsin Naqvi reported "a very positive and productive meeting", saying on X he believes the "momentum will help pave the way for further progress and lasting peace in the region".
