Asian stocks rally, crude drops on lingering hope for a peace\ndeal<\/p>\n
The US military has begun its blockade of Iranian ports along the\nStrait of Hormuz, adding to fears for energy supplies from the Middle\nEast.<\/p>\n
HONG KONG: Stocks rose and oil fell on Tuesday (Apr 14) on hopes for\na deal to end the Middle East war and reopen the Strait of Hormuz, with\nDonald Trump saying Tehran had called to seek an agreement even as a US\nnaval blockade around Iran\u2019s ports began.<\/p>\n
While weekend peace talks in Pakistan ended with no deal, investors\ntook heart from the fact that the two sides found some areas of\nagreement, with Iran saying they had been \u201cinches away\u201d at one\npoint.<\/p>\n
Soon after, the US president said the military would blockade the\nstrategic Strait - through which a fifth of global oil and gas passes -\nadding to fears for energy supplies from the Middle East.<\/p>\n
The US military clarified it would begin blockading all Iranian ports\nin the Gulf from Monday at 2pm (10pm, Singapore time), but will allow\nships not coming or going to Iran to pass through the strait.<\/p>\n
Trump\u2019s blockade announcement saw crude surge as much as 8 per cent\nand Asian stocks sank on Monday. But optimism was revived in New York,\nwith some observers pointing to Trump\u2019s announcement that Iranian\nrepresentatives had called seeking to make a deal.<\/p>\n
\u201cThey\u2019d like to make a deal. Very badly, very badly,\u201d he told\nreporters outside the Oval Office.<\/p>\n
While he did not identify which officials had called, all three main\nindexes in New York ended well in positive territory, while oil gave\nback all its gains.<\/p>\n
And the optimistic tone continued into Asia, with Tokyo and Seoul\nleading gains thanks to renewed buying of tech firms as traders returned\nto the AI theme.<\/p>\n
Taipei\u2019s 1.7 per cent rise helped push the Taiex to a fresh record\nhigh.<\/p>\n
Hong Kong, Shanghai, Sydney, Singapore and Wellington also joined the\npush higher.<\/p>\n
Both main oil prices also fell to hold below US$100, with West Texas\nIntermediate down around 2 per cent and Brent 1.5 per cent lower.<\/p>\n
The equity advances extended a rebound enjoyed last week after\nWashington and Tehran announced a two-week ceasefire in the war, which\nhas sent shockwaves through the world economy since it started on Feb\n28.<\/p>\n
SPI Asset Management\u2019s Stephen Innes said the rallies have been built\non \u201cthe belief that diplomacy, however imperfect, remains in play. Last\nweek\u2019s advance was not driven by resolution but by hope\u201d.<\/p>\n
\u201cThe talks in Pakistan did not deliver a deal, but they did something\njust as important. They kept the door open. And in markets, an open door\nis often enough,\u201d he added.<\/p>\n
\u201cOil felt that shift immediately. Not because the physical reality\nchanged, but because the narrative did. The market began to price not\nthe blockade itself, but the possibility that it is being used as\nleverage rather than a prelude to something more destructive.\u201d<\/p>\n
Still, in a social media post, Trump said the bulk of Iran\u2019s navy had\nalready been destroyed but that if any of what he said were Tehran\u2019s few\nremaining \u201cfast attack ships\u201d approach the blockade \u201cthey will be\nimmediately ELIMINATED\u201d.<\/p>\n
He also said 34 ships had passed through the strait Sunday, adding it\nwas the most since the war began, though the figure could not be\nimmediately corroborated.<\/p>\n
Iran continued to hit out at Washington, with Foreign Minister Abbas\nAraghchi blaming it for the impasse in the talks during a call with his\nSaudi counterpart Prince Faisal bin Farhan.<\/p>\n
\u201cUnfortunately, we witnessed the continued excessive demands of the\nAmerican side in the negotiations, which led to the failure to achieve a\nresult,\u201d his ministry quoted him as saying.<\/p>\n
Analysts suggested the US president was trying to starve Iran of\nfunds but also pressure Beijing, the biggest buyer of Iranian oil, to\nlean on Tehran to reopen Hormuz.<\/p>\n
Meanwhile, the head of the International Energy Agency warned Monday\nthat April could prove a tougher month than March for energy markets and\nthe economy.<\/p>\n
Fatih Birol said March saw the delivery of cargo loaded before the\ncrisis in the Middle East, but \u201cduring the month of April, nothing has\nbeen loaded\u201d.<\/p>\n
\u201cThe longer the disruption is, the more severe the problem becomes,\u201d\nhe told reporters.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asian-stocks-rally-crude-drops-on-lingering-hope-for-a-peace-deal-1776142265", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }