Oil prices recorded modest gains on Tuesday but remained below the $80 per barrel mark after falling sharply a day earlier, following a decision by the United States to temporarily ease sanctions on Iran’s oil sector.
The decline came after the US Treasury announced a temporary waiver allowing Iran to continue producing, selling, and transporting crude oil and petroleum-related products until August 21.
Shipping data also indicated increased tanker movement through the Strait of Hormuz, suggesting a gradual return to normal operations in one of the world’s most critical energy corridors.
US Vice President JD Vance described the latest round of negotiations with Iran as productive, saying a strong foundation had been established for discussions aimed at securing a final agreement. He also noted that Tehran had agreed to allow United Nations nuclear inspectors back into the country.
Iran, however, offered a more cautious assessment of the talks. Foreign Ministry spokesman Esmaeil Baqaei said discussions on nuclear issues had been brief and did not extend into detailed negotiations.
President Donald Trump welcomed the reopening of the Strait of Hormuz, describing the waterway as fully accessible to international shipping after Iran had previously shut it in response to military strikes carried out by US and Israeli forces earlier this year.
“We’re negotiating — we’ll see how that all goes — but we have two things,” Trump said. “We have an open Strait, and we have a country that will never have a nuclear weapon.”
The Strait of Hormuz serves as a major transit route for global oil exports, and its closure during the conflict contributed to volatility in energy markets.
Despite progress in diplomatic efforts, investor sentiment remained cautious across global financial markets. Asian stock exchanges delivered mixed performances following a technology-led sell-off on Wall Street, as concerns resurfaced over the sustainability of the artificial intelligence investment boom.
Technology stocks, which have been major drivers of market growth over the past year, came under pressure. South Korean semiconductor manufacturers SK hynix and Samsung recorded significant losses, dragging the Kospi index down by more than three percent.
Japanese markets also struggled, with investment giant SoftBank losing over seven percent while chipmaker Tokyo Electron posted notable declines. Similar weakness was observed in Taipei and Shanghai, while Hong Kong and Sydney ended largely unchanged. Singapore, Wellington and Manila posted modest gains.
The downturn followed losses in the United States, where the Nasdaq Composite Index dropped more than one percent as major technology companies, including Amazon, Nvidia and Microsoft, declined.
The biggest casualty of the session was SpaceX, which shed more than 16 percent of its market value following the announcement of plans for its first bond offering. The move came shortly after a successful public offering and several strong trading sessions.
The SpaceX development adds to a growing list of major capital-raising initiatives linked to artificial intelligence infrastructure. Recent examples include investment rounds involving Google parent company Alphabet and a data centre partnership between Microsoft and energy giant Chevron.
Analysts say investors are increasingly questioning the enormous spending directed toward artificial intelligence projects, particularly as many companies have yet to demonstrate substantial financial returns from their investments.
Market observers are also expressing concern over elevated valuations among leading technology firms. Nvidia, for example, recently surpassed a market value of $5 trillion.
According to Tony Sycamore of IG, technology stocks have enjoyed exceptional growth, but valuations have become increasingly stretched.
“Questions around capital expenditure and returns on artificial intelligence spending remain unanswered,” Sycamore noted, adding that several major technology firms have lost momentum in recent weeks despite ongoing enthusiasm surrounding AI.
Meanwhile, attention remains focused on Japan, where the yen continues to trade near a 40-year low against the US dollar. Investors are monitoring whether Japanese authorities will take additional measures to support the currency amid persistent inflation concerns and monetary policy uncertainty.
Reports from Japanese media outlets indicated that Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent recently discussed exchange rate developments.
Japanese authorities reportedly spent more than $70 billion last month intervening in currency markets in an effort to stabilise the yen.
Key Figures Around 0215 GMT
Tokyo – Nikkei 225: DOWN 1.1 per cent at 71,548.12
Hong Kong – Hang Seng Index: FLAT at 23,761.34
Shanghai – Composite: DOWN 0.3 per cent at 4,149.51
Seoul – Kospi: DOWN 3.4 per cent at 8,809.27
Brent North Sea Crude: FLAT at $77.92 a barrel
West Texas Intermediate: UP 0.2 per cent at $74.00 a barrel
Pound/dollar: DOWN at $1.3242 from $1.3244 on Friday
Euro/dollar: UP at $1.1427 from $1.1425
Dollar/yen: DOWN at 161.58 yen from 161.66 yen
Euro/pound: UP at 86.28 pence from 86.23 pence
New York – Dow: UP 0.3 per cent at 51,712.71 (close)
London – FTSE 100: UP 0.7 per cent at 10,437.85 (close)
