Oil prices have fallen sharply, and Asian stock markets have risen on hopes of a deal that could bring an end to the US-Israel war with Iran.
US Secretary of State Marco Rubio said during a visit to India that negotiators have “a pretty solid thing on the table” and an agreement to end the conflict may be reached on Monday.
On Monday in Asia, global oil benchmark Brent was down by 5.5% to $97.90 (£72.64) a barrel, while US-traded crude was 5.9% lower at $90.93.
US President Donald Trump had previously said the deal would include the reopening of the key Strait of Hormuz shipping route, without giving further details.
The narrow waterway, through which around a fifth of the world’s oil and liquefied natural gas (LNG) usually passes, has been effectively closed since the conflict started on 28 February.
The Nikkei 225 stock index in Japan rose above 65,000 for the first time after gaining 3% on hopes that the strait would soon reopen.
Japan, like nearby South Korea, has been particularly impacted by the conflict as they are heavily reliant on energy from the Gulf.
The UK and US energy and financial markets are closed on Monday for public holidays.
“We’re still a work in progress. As I said, you know, we thought we might have some news last night. Maybe today,” Rubio said in the Indian capital, Delhi.
His comments came after Trump said he had instructed negotiators “not to rush into a deal,” after earlier suggesting one was close.
Trump said on social media on Saturday that he had a “very good call” with the leaders of Saudi Arabia, the United Arab Emirates, Qatar, and others about a “memorandum of understanding about PEACE.”
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“An agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed,” Trump said.
“Final aspects and details of the deal are currently being discussed and will be announced shortly.”
He also said he had a call on Saturday with Israeli Prime Minister Benjamin Netanyahu, which “went very well”.
The president did not give any further details on the deal, but has insisted any agreement would “absolutely” prevent Iran from obtaining a nuclear weapon.
But on Sunday, he said on Truth Social: “Both sides must take their time and get it right. There can be no mistakes!”
