Asian stocks, oil seesaw with Iran deadline in focus

Asian markets opened higher as the MSCI Asia Pacific index increased 0.7% as a result of gains in South Korea.

Meanwhile, Brent crude trimmed opening gains and was trading just under $110 a barrel on the back of markets remaining volatile prior to Trump's Tuesday 8pm ET cutoff. US equity index futures recovered from initial losses and were trading little changed.

Trump said talks with Iran are “going well” ahead of the deadline to agree to a deal, even as he insisted that freedom of navigation through the Strait of Hormuz must be part of any accord. If Iran doesn’t agree to the US’s terms, the military may destroy “every bridge in Iran by 12 o’clock tomorrow night” and put every power plant “out of business,” Trump warned Monday.

Iran reportedly passed to mediator Pakistan a rejection of a ceasefire proposal. It demanded a permanent end to the war, lifting of sanctions, and reconstruction efforts, in addition to protocol for safe passage through Hormuz, according to the state-run Islamic Republic News Agency.

While traders kept a close eye on geopolitical developments, they awaited this week’s key inflation readings. Data published Monday showed the US service economy expanded in March at a slower pace as employment shrank by the most since 2023 and input prices accelerated.

With inputs from Bloomberg

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