Asian stocks soared to record highs on Thursday while the US dollar slipped and oil nursed steep losses as traders embraced the prospect of a peace deal in the Middle East, although the fate of the critical Strait of Hormuz remains unresolved.

Stocks in Asia slid Tuesday while oil prices eased but remained well above $100 a barrel, amid renewed hostilities between the U.S. and Iran.

Signaling diplomatic efforts for resolving the Middle East crisis were on track, President Donald Trump said the U.S. bid to guide ships out of Strait of Hormuz had been paused.

Asian stocks soared to record highs on Thursday while the US dollar slipped and oil nursed steep losses as traders embraced the prospect of a peace deal in the Middle East,…

Wall Street saw even sharper swings earlier in the war, when hopes rallied for a reopening of the Strait of Hormuz, only to get quickly dashed.